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Spot Silver retreats on easing Middle East fears

Spot Silver retreated more than 3% on Monday, as fears of a wider conflict in the Middle East eased, while trimming demand for safe haven assets.

Iran has downplayed Israel’s retaliatory drone strike against the Islamic state – a move meant to avert conflict escalation in the region.

The yield on 10-year US Treasury Notes rose and last stood at 4.656%, reducing the appeal of non-yielding Silver.

Meanwhile, Chicago Federal Reserve President Austan Goolsbee said progress on reducing inflation had “stalled” this year, suggesting interest rates will have to be kept high for longer.

Market players are now expecting the key US PCE inflation figures, due to be released on Friday, for more clues on the rate outlook.

Annual core PCE inflation eased to 2.8% in February, or the lowest rate in almost three years, from 2.9% in January.

As of 7:19 GMT on Monday Spot Silver was losing 3.36% to trade at $27.718 per troy ounce.

The precious metal has eased from highs not seen since February 2021.

Silver Futures for delivery in May were retreating 3.81% to trade at $27.745 per troy ounce.

The US Dollar Index, which reflects the relative strength of the greenback against a basket of six other major currencies, was inching down 0.01% to 106.105 on Monday.

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