- Silver struggles as rising energy prices strengthen hawkish expectations for major central banks’ policy outlooks.
- Trump set a Tuesday deadline for Iran to reopen the Strait of Hormuz, escalating threats against its civilian infrastructure.
- Fed may delay rate cuts and could raise borrowing costs later this year if inflation remains persistently elevated.
Silver price (XAG/USD) holds losses for the third successive day, trading around $72.20 per troy ounce during the Asian hours on Monday. The non-interest-bearing Silver is under pressure as escalating Middle East tensions have driven a sharp rise in energy prices, reinforcing hawkish expectations for major central banks’ policy outlooks. The white metal has also failed to receive support from increased safe-haven demand, weighed down by forced liquidations as investors cover losses in other markets.
US President Donald Trump issued a fresh ultimatum to Iran, warning of strikes on its power plants and other civilian infrastructure if the Strait of Hormuz is not reopened. Trump threatened severe consequences, saying he would bring “hell” to Iran, and set a new deadline for Tuesday at 8 PM Eastern Time. Tehran has rejected the ultimatum and continues attacks on energy assets across the Middle East.
Markets are increasingly pricing in the US Federal Reserve (Fed) to delay rate cuts, with the possibility of higher borrowing costs later this year if inflation remains persistent. Investors now turn their focus to the latest Federal Open Market Committee (FOMC) Meeting Minutes for clearer signals on the policy path ahead.
Meanwhile, the Bank of England (BoE) unanimously kept the Bank Rate unchanged at 3.75% in March, pausing its recent easing cycle amid rising inflation risks linked to higher energy costs driven by Middle East tensions. Some analysts expect rate cuts to be pushed back until late 2026 or even 2027, while others warn that a pre-emptive rate hike remains possible if inflation expectations become unanchored. Moreover, European Central Bank (ECB) President Christine Lagarde and other Governing Council members have reiterated that policy will stay restrictive until inflation sustainably returns to the 2% target.
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