Silver price falls sharply amid easing geopolitical tensions, Fed policy outlook

Silver (XAG/USD) is trading at around $89.70, showing a decline of 2.50% on the day. This downward trend follows a corrective move after reaching record highs earlier in the week. Easing geopolitical tensions are onboarding a shift in investor sentiment towards risk, thus reducing demand for precious metals. Furthermore, ongoing insights suggesting that the Federal Reserve will continue to increase interest rates have also put pressure on silver prices. Silver tends to rise under economic uncertainty; therefore, the current environment strengthens the selling pressure. Investors are increasingly shifting funds to the equity market, flowing out from precious metals like silver. Given these developments, market participants should exercise caution regarding silver's future price trends.