- Silver price loses ground to near $36.20 in Monday’s Asian session.
- The US UoM Consumer Sentiment Index improved in June.
- Geopolitical risks might help limit Silver’s losses.
The Silver price (XAG/USD) edges lower to around $36.20 during the Asian trading hours on Monday. The recovery in the Greenback weighs on the USD-denominated commodity price. However, the potential downside seems limited amid the escalating geopolitical tensions in the Middle East.
The upbeat US economic data released on Friday could provide some support to the US Dollar (USD). The University of Michigan Consumer Sentiment Index improved for the first time in six months, with the index rising to 60.5 in June from 52.2 in the previous reading. This reading came in above the market estimations of 53.5.
On the other hand, markets fear the Israel-Iran conflict could spill over into regional conflict, which boosts safe-haven assets like Silver. Israel started attacks on Iran on Friday, targeting nuclear facilities and missile factories and killing military leaders. Semi-official Iranian media outlet Mehr News reported on Sunday that the fourth phase of Iran’s operation against Israel has begun. Iranian officials underscored that they would “respond firmly to any adventurism” from Israel.
The US Federal Reserve (Fed) policy meeting on Wednesday will be closely watched. The Fed is anticipated to keep interest rates steady at its June meeting. However, futures markets expect two rate cuts by year-end, possibly starting in September, bolstered by tame inflation data last week.
