Silver Plunges Over 10%

Silver futures fell more than 10% on Tuesday, dipping below $80 per ounce, as investors turned to the US dollar rather than precious metals for safety amid intensifying geopolitical tensions. The greenback gained support as investors sought refuge amid surging energy prices linked to the Middle East conflict, which fueled inflation worries, pushed bond yields higher and prompted markets to reassess the Federal Reserve’s policy path. Expectations for the next Fed rate cut have shifted from July to September, though 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 warned that vessels attempting to cross the Strait of Hormuz could be targeted, effectively halting tanker traffic amid heightened security risks.

Silver decreased 5.16% to 84.675 USD/t.oz

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.