Silver price corrects after nearing the top of a major range at circa $26.00.
The decline could be as a result of fading hopes the Federal Reserve will cut interest rates in the near term.
Long-term fundamentals however support, including positive global growth and robust demand.
Silver price (XAG/USD) pulls back at the start of the week and is trading in the $25.10s after reaching close to the top of a long-term range. It is possible the correction is due to a change in expectations regarding the future path of interest rates, which are now expected to remain higher for longer in the US.
Silver, like Gold, is a non-yielding asset so it tends to carry an opportunity cost – the price holders must pay for not staying in cash and earning interest. Recent US inflation data showed inflation remaining stubbornly high. This has delayed the time when the Federal Reserve (Fed) is expected to pull the trigger on cutting interest rates, which could be a factor weighing on the Silver price.
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