FX.co ★ Silver Set for Third Weekly Decline

Silver held above $73 per ounce on Friday but remained on track for a third straight weekly decline, as surging energy prices linked to the Middle East conflict stoked inflation fears and lowered expectations for interest rate cuts. Higher energy costs and intensifying inflationary pressures drove investors toward the US dollar and Treasuries, undermining demand for traditional safe-haven metals. The energy market shock also forced traders to reassess the monetary policy outlook following hawkish signals from major central banks. The Federal Reserve left interest rates unchanged and indicated that cuts are unlikely until there is clear evidence of easing inflation. Similarly, the ECB, BOJ, and BOE all kept rates steady but adopted a more hawkish tone, signaling a bias toward tighter policy. Markets now foresee no Fed easing until 2027 and are pricing in two rate hikes each from the ECB and BOE this year, further eroding the appeal of precious metals.