Silver prices remained under pressure
(MENAFN- MENAFNEditorial) Hello MENA FN,
Silver Under Pressure Amid Fed Tightening Bets
Silver prices remained under pressure, although the asset stayed within its recent consolidation range. Elevated oil prices could continue to fuel inflation concerns, yields, and interest rate expectations. The monetary policy backdrop remains a headw nd.
The Federal Reserve is expected to keep interest rates unchanged this month, but markets continue to price in another increase before year-end. Cleveland Fed President Beth Hammack has argued for a more restrictive stance to prevent inflation expectations from becoming entrenched, while other officials have maintained a hawkish bias.
The pressure is also global. The Bank of Japan has signalled that further gradual tightening remains possible, while markets continue to expect another ECB interest rate increase in the upcoming m etings.
Attention now turns to this week's US inflation data. A stronger reading could reinforce expectations of further tightening, support the dollar and push silver back towards its recent lows. Softer inflation would reduce pressure on yields and could open the way for a corrective rebound.
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