Silver Rebounds to $63, but Inflation Risks Keep Buyers on the Sidelines

Silver traded near $63.62 on Wednesday, edging higher intraday after dipping to a low of $62.19 earlier in the session, extending the pullback that began after rejection from the $66.50 area on Tuesday.

**Stabilizing After Pullback, but Rebound Momentum Limited**

The white metal is attempting to find its footing following a notable decline in the prior session. Market reports indicate that silver prices were rejected from the $66.50 region and found some support near $62 in the short term. However, the current rebound is modest, with buyers showing weak willingness to enter, keeping the market largely in a wait-and-see mode.

**Inflation Risk Remains the Key Suppressive Factor**

Rising oil prices driven by Middle East geopolitical tensions have fueled concerns over sticky inflation, in turn dampening expectations for multiple Federal Reserve rate cuts this year. According to reports, Brent crude had previously surged past the $125 mark, with high oil prices transmitting through transportation and chemical costs into overall price levels, making inflation more persistent. Historical experience shows that every sustained $10 increase in oil prices can push U.S. inflation up by approximately 0.3 percentage points. Against this backdrop, while precious metals carry safe-haven attributes, upward revisions to rate expectations pressure non-yielding assets.

**Institutional View: Near-Term Pressure, Long-Term Drivers Intact**

Some analysts note that the precious metals market is currently undergoing a standard "portfolio risk-aversion move," with futures long positions not particularly elevated, which should limit downside. Other institutions believe long-term drivers remain unchanged, and precious metals still have a basis for a rebound. However, until inflation data and the Fed's policy path become clearer, silver buying may continue to be restrained.