Silver price turns red around $27.30 on Wednesday, despite the weaker USD.
A relaxation in Middle East geopolitical tensions drags silver price to a two-week low.
The rising demand for white metal in industrial uses supports the XAG/USD.
Silver price (XAG/USD) trades on a softer note near $27.30 during the early European session on Wednesday. The easing of tensions in the Middle East and the risk-on environment cap the upside of the white metal.
Geopolitical tensions in the Middle East, particularly in Israel and Iran, have boosted the price of precious metals in recent weeks. However, those fears have largely dissipated as Iran and Israel have signaled they are not interested in a wider war after attacks earlier this month. This, in turn, leads traders to reduce their precious metal positions and favor riskier assets.
Furthermore, the robust economy and rising inflation pressures in the United States have triggered the expectation that the US Fed might delay its easing cycle this year, which weighs on the US Dollar-denominated silver. Investors will take more cues about inflation trajectory and interest rate outlook from the US Q1 Gross Domestic Product (GDP) number on Thursday and the Core Personal-Consumption Expenditures (PCE) Price Index, the Federal Reserve's (Fed) preferred gauge of underlying inflation, due later on Friday
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