Silver Price Forecast: XAG/USD declines below $58 amid uncertainty over US-Iran peace prospects

Silver price (XAG/USD) trades almost 1% lower, slightly below $58.00, during the Asian trading session on Wednesday. The Silver price faces selling pressure as investors turn cautious towards the sustainability of peace between the United States (US) and Iran after Washington refused to meet with Tehran despite reaching Oman.

On Tuesday, US negotiations reached Doha for talks with Iran regarding Tehran’s demand for toll system near the Strait of Hormuz, a vital passage to almost 20% of global energy supply. However, the US team said that it will only meet with mediators and not Tehran’s negotiators. This has led to continued uncertainty over whether global ships could continue using the chokepoint without paying any fees.

Such a scenario could lift oil prices again and eventually force traders to raise hawkish Federal Reserve (Fed) bets further. Increasing prospects of higher Fed interest rates bode poorly for non-yielding assets, such as Silver.

Meanwhile, investors await the US Nonfarm Payrolls (NFP) data for June, which will be released on Thursday.

In Wednesday’s session, market participants will pay close attention to the US ADP Employment Change and the ISM Manufacturing PMI data for June, which will be released during the North American session.

According to estimates, the US private sector created 113K fresh jobs, slightly lower than 122K in May. The ISM Manufacturing PMI is expected to remain steady at 54.0.