16.03.202602:21:44UTC+00Silver Remains Under Pressure

Silver slipped to about $80 per ounce on Monday, extending its decline to a fourth consecutive session as the war involving Iran entered its third week and oil prices stayed volatile. Crude initially spiked after the United States struck military targets on Iran’s main oil-export hub of Kharg Island over the weekend and warned it could hit additional energy infrastructure if Tehran disrupts shipping through the Strait of Hormuz.

At the same time, markets are assessing reports that Washington is poised to unveil a coalition of countries to escort commercial vessels through the narrow strait, a critical chokepoint linking the Persian Gulf to global energy markets.

The jump in energy costs and renewed inflation pressures have dampened expectations for interest-rate cuts by the US Federal Reserve and other major central banks, creating a headwind for non-yielding precious metals such as silver. The Fed is widely expected to leave its policy rate unchanged at this week’s meeting, while monetary policy decisions are also due from central banks in the Eurozone, the United Kingdom, Japan, Switzerland, Australia, and Canada.