Silver Drops on Strong Dollar, Yields
2026-03-03 06:33
By
Jam Kaimo Samonte
1 min. read
Silver declined as much as 7% to $83 per ounce on Tuesday, extending prior-session losses as a firmer dollar and higher Treasury yields offset demand for traditional safe-haven assets.
The greenback strengthened as investors sought the reserve currency amid surging energy prices tied to the Middle East conflict.
Rising fuel costs also amplified inflation concerns, pushing bond yields higher as markets reassessed the outlook for Federal Reserve policy.
Expectations for the next Fed rate cut have been deferred to September from earlier projections of July, although two 25 basis point reductions remain priced in.
Meanwhile, the US military is expected to intensify strikes on Iran, potentially targeting missile production facilities, drones and naval assets.
A senior Iranian official also warned that vessels attempting to transit the Strait of Hormuz could be targeted, with tanker traffic effectively stalled amid heightened security risks.