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Silver prices traded sideways on Tuesday, extending a period of consolidation as investors remained cautious ahead of key geopolitical developments.
The approaching US-imposed deadline on Iran is heightening uncertainty, discouraging aggressive positioning across markets.
This backdrop has kept oil prices elevated, reinforcing inflation concerns and supporting a more cautious monetary policy outlook.
Recent remarks from Federal Reserve officials further anchor this narrative. Policymakers continue to emphasise inflation risks over labour market concerns, reinforcing expectations that rates could remain unchanged for longer. Forecasts now largely discard the possibility of interest rate cuts this year, which limits the upside for non-yielding assets such as silver.
Despite current headwinds, the broader structural backdrop remains constructive, with the market expected to post a sixth consecutive annual supply deficit. Looking ahead, attention turns to the release of the Federal Reserve minutes, along with key inflation indicators. The data could be crucial in determining expectations regarding monetary policy, which might affect the direction of silver prices.
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