**BREAKING: Silver Under Pressure as US-Iran Tensions Revive Fed Rate Hike Expectations**
Silver prices are declining Monday following renewed military confrontations between the United States and Iran over the weekend. The geopolitical flare-up has reignited concerns about energy-driven inflation, causing traders to reassess Federal Reserve policy expectations. Markets are now pricing in increased probability of another interest rate hike later this year, putting pressure on non-yielding precious metals like silver.
The XAG/USD pair is attracting fresh selling interest as higher rate expectations strengthen the dollar and increase the opportunity cost of holding silver. Energy market volatility stemming from Middle East tensions is bleeding into broader inflation calculations, forcing the Fed’s hand on maintaining its hawkish stance. Traders in precious metals and currency markets should monitor both geopolitical developments and upcoming Fed commentary closely as both factors will drive silver’s near-term direction.
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FXnCO Insight
** Silver traders should prepare for continued downside pressure while rate hike expectations remain elevated, but watch for potential safe-haven buying if US-Iran tensions escalate materially.
Source: FXStreet