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Silver price (XAG/USD) declined nearly 1% to $79.00 during European trading hours on Tuesday, pressured by anticipation of Kevin Warsh’s confirmation hearing for the Federal Reserve chairmanship. The hearing, which will assess Warsh’s economic policies, has heightened market uncertainty. Traders are closely monitoring how Fed leadership changes might influence monetary policy, particularly regarding inflation control and interest rates, which directly impact silver’s demand as an inflation hedge.
This development matters for commodity and forex markets, as Fed decisions historically drive global liquidity and risk appetite. A dovish Fed stance could weaken the US dollar, boosting silver prices, while a hawkish approach might strengthen the dollar and suppress silver. Investors are also weighing geopolitical tensions and industrial demand for silver against central bank policy shifts.
MENA investors should watch the outcome of Warsh’s hearing, scheduled for next week, and subsequent Fed statements. Broader factors like US economic data (CPI, employment) and gold prices will also shape silver’s trajectory. Traders may consider hedging strategies if volatility persists ahead of key policy announcements.
