Dollar and oil pressure silver amid Fed policy watch

Silver prices are currently navigating a volatile market, influenced by a confluence of geopolitical tensions and evolving expectations surrounding the U.S. Federal Reserve's monetary policy. In the latest trading session, spot silver registered a modest gain, reaching $60.61 per ounce, marking a 1.09% increase.

Despite this recent uptick, the precious metal has experienced a significant downturn over the past month, shedding 10.62% of its value. Domestically, an ounce of silver is trading at 91.36 Turkish lira. The market's attention is now keenly focused on the minutes from the Federal Reserve's Federal Open Market Committee (FOMC) meeting held on June 16-17.

Geopolitical events, including new U.S. actions against Iran and the cancellation of its oil export license, have heightened risk perception in global markets. This increased tension has rippled through energy markets, with U.S. crude oil prices rising approximately 3% earlier in the day. Concurrently, a strong U.S. dollar continues to exert downward pressure on precious metals.

Investor sentiment is being shaped by anticipation of the Fed's future interest rate trajectory. According to CME FedWatch data, market expectations for a Fed rate hike in September have risen to over 63%, from a previous level of around 57%. Such expectations typically put pressure on non-interest-bearing assets like silver. Future price movements are expected to be significantly influenced by upcoming economic data releases and statements from Fed officials.