Silver Price Forecast: $XAG
/USD holds losses near $65.50 amid Fed hawkish outlook
Silver weakens as rising inflation concerns reinforce hawkish central bank outlooks.
Trump gave Iran 48 hours to reopen Hormuz or face strikes on energy infrastructure.
Traders are increasingly betting on a potential Fed rate hike toward year-end.
Silver price (XAG/USD) extends its losing streak for the fifth successive session, trading around $65.60 per troy ounce during the Asian hours on Monday. The non-interest-bearing Silver loses its shine as the ongoing Middle East conflict surges oil prices that continue to fuel inflation concerns and reinforce a hawkish stance among major central banks.
US President Donald Trump has reportedly issued Iran a 48-hour ultimatum to reopen the Strait of Hormuz or face potential strikes on its energy infrastructure. Moreover, reports suggest Washington is considering a ground operation to seize Iran’s Kharg Island, a key oil export hub.
Iran’s Islamic Revolutionary Guard Corps (IRGC) warned it would fully shut the strait if the US proceeds, while Tehran threatened to target US and Israeli assets across the region, including energy, IT, and desalination facilities.
Reuters reported that Saudi Aramco, the world’s largest oil exporter, has cut crude shipments to Asian buyers for a second straight month in April as the US-Israel conflict with Iran disrupts flows through the Strait of Hormuz. Supplies are being limited to Arab Light crude shipped from the Red Sea port of Yanbu, tightening feedstock availability for Asian refiners and capping output.
Meanwhile, traders are ramping up bets on a potential Federal Reserve (Fed) rate hike toward year-end amid concerns over persistent inflation. The ECB, BOE, and BOJ also left rates unchanged last week but signaled they stand ready to tighten policy further if inflation pressures persist.