Silver prices (XAG/USD) fell below the $60.50 mark on Friday during Asian trading hours, dipping to around $60.30 per troy ounce. This decline is attributed to growing inflation worries driven by rising crude oil prices and escalating geopolitical tensions between the US and Iran, according to FX Street.
The precious metal’s retreat reflects investor caution as inflation fears intensify, fueled in part by the ongoing conflict risks in the Middle East that could impact global energy supplies. These factors combined have pressured silver, often seen as an inflation hedge, to move lower in the FX markets.
For Japanese investors, this movement underscores the interconnected risks in commodities and currencies, particularly given Japan’s sensitivity to energy price fluctuations and regional geopolitical stability.