Silver Drops As Investors Track Cautious US Diplomatic Efforts And Risks Abroad

Silver prices settled lower by 1.1% at 271,846 as investors remained cautious amid ongoing diplomatic discussions between the United States and Iran regarding a possible resolution to the Middle East conflict. Market sentiment was further pressured by hawkish comments from Federal Reserve officials and a stronger US dollar, which reduced the appeal of non-yielding assets. Richmond Federal Reserve President Thomas Barkin stated that current monetary policy remains appropriately positioned to respond to economic shocks, while emphasizing concerns over inflation and economic growth risks. According to CME FedWatch data, traders are currently pricing in a 58% probability of at least one 25 basis-point US interest rate hike by December. Economic sentiment indicators from the United States also reflected growing uncertainty.