Silver hovered around $79 per ounce on Wednesday, consolidating losses from the prior session as investors awaited the latest US Federal Reserve policy decision and weighed inflation risks stemming from the Iran conflict. The Fed is widely expected to leave interest rates unchanged, with traders closely watching Chair Jerome Powell’s comments on how heightened oil market volatility could shape future policy.
Climbing oil prices have amplified inflation concerns, leading markets to largely dismiss the prospect of a near-term Fed rate cut and to price in only one reduction for the year. At the same time, Iran has stepped up attacks on regional energy infrastructure this week, while US allies have rebuffed President Donald Trump’s call to assist in securing commercial shipping through the Strait of Hormuz. Nonetheless, Iran has permitted safe passage for certain vessels, depending on their affiliations.
