Silver declined on market caution, attention turns to US Midterms

Silver prices were back under pressure on Tuesday and stayed close to a yearly low.

The metal remains exposed to market uncertainty and investor caution as attention turns to the midterm elections in the US, and AI concerns continue to weigh on risk appetite.

Volatile oil prices added to the uncertainty regarding monetary policy at a time when markets continue to price in a high probability of a Fed rate hike in December and next year.

Elevated yields have reduced the metal’s appeal and could continue to drive declines.

Attention remains on the results of the US midterm elections and their impact on policy and risk appetite. The US approach in the Middle East will remain a key factor for the market. Any new escalations could push oil prices up, fuel inflation concerns, and reinforce monetary policy tightening expectations and lift Treasury yields, while progress toward a diplomatic deal with Iran could push crude lower and soften anticipations around interest rates.