Silver is down by 5%

Silver traded near $61 an ounce on Wednesday, hovering at six-month lows as expectations of tighter Federal Reserve policy outweighed support from the interim US-Iran peace agreement, which helped ease inflation concerns. At its latest policy meeting, Fed officials left interest rates unchanged but indicated increasing support for future rate hikes, while new Fed Chair Kevin Warsh reaffirmed his commitment to restoring price stability. Meanwhile, progress in negotiations between Washington and Tehran encouraged a rise in traffic through the Strait of Hormuz, easing pressure on global energy supplies and reducing inflation risks. Silver and other metals also faced additional selling pressure as a sharp decline in US technology stocks prompted investors to trim bullion positions to offset losses elsewhere in their portfolios.

Silver decreased 5% to 61.8 USD/t.oz

Silver fell toward $63 an ounce on Tuesday, extending recent losses as firm expectations for Federal Reserve interest rate hikes outweighed optimism surrounding ongoing US-Iran peace negotiations. Both Deutsche Bank and BofA Global Research have revised their forecasts to include a rate increase in September. Investors are now focused on this week’s PCE report, which contains the Fed’s preferred inflation gauge and is expected to offer fresh insight into underlying price pressures. Meanwhile, Washington granted Iran a 60-day license to sell oil on international markets, boosting expectations of a faster recovery in global supply. Shipping through the Strait of Hormuz has also increased, with producers such as Kuwait and the United Arab Emirates finding alternative export routes, while Iran shipped more than 30 million barrels over the past week.