- Silver rebounds after plunging over 16% as hawkish Fed signals and easing geopolitics pressured precious metals.
- Fed’s Cook said she won’t support further rate cuts without clearer evidence that inflation is easing.
- Safe-haven demand for Silver eases after Iran confirms talks with the US in Oman on Friday.
Silver price (XAG/USD) pares its daily losses, yet remains in the negative territory, trading around $80.50 per troy ounce during the early European hours on Thursday. Silver price plunged as much as over 16% as precious metals faced renewed selling pressure amid hawkish signals from the Federal Reserve (Fed) and easing geopolitical tensions.
Fed Governor Lisa Cook said she would not back another cut without clearer evidence that inflation is easing, stressing greater concern over stalled disinflation than labor market weakness. Investors also weighed the implications of Kevin Warsh’s nomination as Fed chair, citing his preference for a smaller balance sheet and a less aggressive approach to rate reductions.
Safe-haven demand for precious metals, including Silver, fades after Iran confirmed it would hold talks with the United States (US) in Oman on Friday. However, Silver prices gained ground on media reports suggesting the talks might collapse, but officials from both sides later said discussions would proceed as scheduled, even though the agenda remains unsettled.
Iranian Foreign Minister Abbas Araghchi said talks will be held in Oman on Friday, while a White House official confirmed continued engagement on a potential nuclear deal. Uncertainty persists over the scope, with Tehran aiming to limit discussions to its nuclear program and Washington seeking to include missiles, regional militancy, and human rights.
The dollar-denominated grey metal also fell as a stronger US Dollar (USD), driven by hawkish Fed signals and slower rate-cut expectations, weighed on the Silver price. A firmer Greenback raises Silver’s cost for non-US buyers, dampening demand, while higher US yields increase the opportunity cost of holding non-yielding metal.
