Silver prices plunged more than 4% to US$72 per ounce on Tuesday (April 28), their lowest level since late March, amid surging oil prices and rising inflation concerns ahead of a series of major central bank meetings. The pressure comes as geopolitical uncertainty has again plagued energy markets, reinforcing the narrative that inflation could remain higher than expected.

A US official stated that President Donald Trump rejected Iran's latest proposal, dashing hopes of a near-term de-escalation of the conflict. This development maintains the risk premium on energy and fuels expectations of higher interest rates, which are typically a drag on precious metals.

While precious metals are often viewed as a hedge against inflation, rising interest rates reduce silver's appeal because it offers no yield. Markets are now focused on the Federal Reserve, which is expected to hold interest rates, with market participants watching for signals on its next policy direction from Jerome Powell's statement and press conference.

In Asia, the Bank of Japan

In Asia, the Bank of Japan kept interest rates unchanged in a split decision, while other major central banks are expected to hold policy this week but with a more hawkish tone. The direction of yields and the US dollar, oil price dynamics, and changes in dunia interest rate expectations are key factors that will determine whether pressure on silver continues or begins to ease. (asd)