06.03.202602:22:37UTC+00Silver Set for Weekly Loss on Strong Dollar

Silver climbed toward $84 per ounce on Friday as the broader precious metals market rebounded, yet it remained on course for a weekly loss of more than 10%. Investors continued to favor the US dollar amid an escalating conflict in the Middle East and intensifying inflation concerns. The US-Israeli offensive against Iran has now entered its seventh day, while Tehran has responded with a new wave of missile and drone strikes across the Gulf.

Market participants also faced sharply higher oil prices, which have stoked fears of a renewed bout of global inflation. That backdrop has reinforced expectations that the Federal Reserve will postpone interest rate cuts, bolstering the dollar at the expense of other traditional safe-haven assets. Investors have pushed back their anticipated timing for the Fed’s next rate reduction to September or October, compared with earlier forecasts that pointed to July.

Recent US economic data have underscored the economy’s resilience, with lower initial jobless claims, stronger productivity, fewer announced job cuts, and faster-than-expected growth in the services sector all contributing to the view that monetary policy could remain tighter for longer.