Silver Prices Accelerate Decline as Investors Eye U.S. Data

Silver prices have accelerated their decline, falling below $62 per ounce with a nearly 5% drop. This trend is driven by market expectations of continued interest rate hikes by the U.S. Federal Reserve, which have outweighed optimism surrounding peace talks between the U.S. and Iran.

Rising interest rate expectations have put pressure on precious metals that do not offer interest returns. Deutsche Bank and Bank of America Global Research have updated their interest rate forecasts, including the possibility of a rate hike in September. These expectations have reduced investor interest in precious metals, intensifying downward pressure on silver prices.

Global markets are focused on the upcoming personal consumption expenditures (PCE) price index data. Higher-than-expected inflation figures could lead the Fed to maintain its tight monetary policy for a longer period. Investors are closely monitoring data that may signal the Fed's future policies.

Additionally, the U.S. granting a 60-day license for Iran to sell oil on international markets has strengthened expectations for a faster recovery in global oil supply. Increased maritime traffic in the Strait of Hormuz and the establishment of alternative export routes by producer countries like Kuwait and the UAE have also eased supply concerns in energy markets. Iran's significant oil shipments in the past week have further contributed to easing anxieties about global energy supply. The combination of rising interest rate expectations and reduced energy supply concerns is limiting demand for safe-haven assets, continuing to pressure silver prices.