Silver (XAG/USD) prices pared intraday losses, trading around $36.10 per troy ounce during Asian hours on Tuesday (6/24). Precious metals prices, including Silver, depreciated as a ceasefire agreement between Israel and Iran reduced demand for safe havens.

President Trump said on Monday that a "complete and total" ceasefire between Israel and Iran would go into effect to end the conflict between the two countries. He also added that Iran would begin the ceasefire immediately, followed by Israel after 12 hours.

Trump's comments came shortly after Iran fired missiles at the Al Udeid Air Base in Qatar on Monday. Qatari officials said the missiles were intercepted and the base had been evacuated in advance.

On Monday, Federal Reserve (Fed) Vice Chair for Supervision Michelle Bowman could support a July interest rate cut as risks to the job market may be rising. Bowman also highlighted that inflation appears to be on a sustainable path back to 2%, and he is less concerned that tariffs will cause an inflation problem. Non-interest-bearing silver could attract buyers as investors seek better returns on their investments.

Furthermore, Fed Governor Christopher Waller highlighted on Friday that the US central bank could begin easing monetary policy as early as next month. However, Fed Chairman Jerome Powell cautioned that ongoing policy uncertainty will keep the Fed on hold, and any rate cuts will depend on further improvement in employment and inflation data. Investors will likely be watching Fed Chairman Jerome Powell, who is scheduled to testify before the US Congress on Tuesday and Wednesday, for clues on the future direction of interest rates. (alg)

Source: FXstreet