FX.co ★ Silver Stabilizes After Sharp Drop

Silver held above $75 per ounce on Thursday, steadying after a nearly 5% decline in the previous session, as hawkish signals from the US Federal Reserve and surging oil prices pressured the precious metals market. As expected, the Fed left its policy rate unchanged on Wednesday but highlighted upside risks to inflation stemming from the war involving Iran. Policymakers indicated that rate cuts are unlikely until there is clearer evidence of easing inflation, though the central bank still projects one rate reduction this year. Complementing that stance, data released Wednesday showed US producer prices rose more than anticipated in February. At the same time, oil prices advanced further, with Brent crude surpassing $110 a barrel after fresh attacks on energy infrastructure in the Middle East. Iran launched missile strikes on a Qatari facility that houses the world’s largest LNG export plant, one of several targets Tehran pledged to hit following an Israeli strike on Iran’s South Pars gas field.