Silver retreats below $85 as market sentiment sours

Silver accelerated its reversal on Tuesday, trading in Europe at $84.80, after dropping two-month highs right above $87.00 earlier in the day. The XAGUSD pair snapped a 4-day rally, weighed down by higher US Treasury yields and a stronger dollar, as market sentiment soured amid the deadlock in the US-Iran peace process. The greenback is drawing support from cautious market sentiment, and the US-Iran ceasefire teeters after Tehran rejected the latest US peace proposal, raising concerns about a resumption of hostilities. President Donald Trump said on Tuesday that the ceasefire is on “life support,” and the possibility of a resumption of hostilities starts to be seen as an option. In the macroeconomic front, traders await April’s US consumer price index (CPI) release, which is expected to show that annual inflation accelerated to 3.7%, its highest level since September 2023. Core inflation is seen growing by a more moderate 2.7% yearly rate, from 2.6% in March, yet at levels significantly above the Federal Reserve’s target rate. Investors are wary of a higher-than-expected inflation reading, which will strengthen the case for a hawkish turn in the Fed’s forward guidance. XAGUSD by TradingView (Source: OANDA) The post Silver retreats below $85 as market sentiment sours appeared first on Financial Mirror.