Silver Price Forecast: XAG/USD slides below $73.00 as Fed cuts bets fade on oil
Silver price (XAG/USD) halts its five-day winning streak, falling over 2.5% and trading around $73.80 per troy ounce during the Asian hours on Monday. The non-interest-bearing white metal loses appeal as the effective shutdown of the Strait of Hormuz drives energy prices higher, heightening inflation and reinforcing expectations that the Federal Reserve (Fed) and other central banks may delay rate cuts or even tighten policy further.
West Texas Intermediate (WTI) opened the week with a bullish gap, trading about 7.5% higher near $97.10 per barrel at the time of writing. Crude oil prices rise due to the re-escalation of the conflict between the United States (US) and Iran.
US President Donald Trump said Washington would begin blockading all ships entering or leaving the Strait of Hormuz after US–Iran peace talks in Islamabad collapsed. The US Central Command (CENTCOM) added that forces will start blockading all maritime traffic to and from Iranian ports at 10 AM ET (14:00 GMT) on Monday.
Stronger US Consumer Price Index (CPI) March data reinforced the Federal Reserve’s (Fed) higher-for-longer stance. The US Bureau of Labor Statistics (BLS) reported on Friday that annual CPI rose to 3.3% in March from 2.4% in February, matching expectations. On a monthly basis, CPI increased 0.9% after 0.3% previously. Meanwhile, core CPI rose 0.2% month-over-month and 2.6% year-over-year.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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