Silver Price Forecast: XAG/USD rises to near $64 on hopes that US-Iran ceasefire remains intact

Silver price (XAG/USD) claws back its early losses and rises to near $64.10 during the early European trading session on Thursday. The white metal attracts bids amid hopes that the April ceasefire between the United States (US) and Iran remains intact despite the exchange of attacks this week.

US President Trump has told aides to deliver a message to Iran via Qatar that the attacks did not mean a “restart of all-out war,” and were only in response to the helicopter downing, The Wall Street Journal (WSJ) reported.

In the last two days, the US Central Command (CENTCOM) launched attacks on various targets in Iran, calling them “self-defense attacks” against Tehran’s “unwarranted and continued aggression”. These were anticipated as US President Donald Trump vowed retaliation against Iran for shooting down a US Apache helicopter patrolling over the Strait of Hormuz.

However, intensified speculation that the monetary policy adjustment by the Federal Reserve (Fed) this year will be on the upside is expected to keep the Silver price under pressure. According to the CME FedWatch tool, the odds of the Fed delivering at least one interest rate hike this year are almost 71%. Higher interest rates by the Fed bode poorly for non-yielding assets, such as Silver.