Silver Rises After 2-Day Decline

Silver gained more than 2% to trade above $84 per ounce on Wednesday after sliding for two straight sessions, as ongoing Middle East hostilities raised concerns about a protracted regional conflict. The US-Israeli war on Iran entered its fifth day, with Israel striking a building where clerics were meeting to elect a new Supreme Leader on Tuesday. US President Donald Trump voiced concern that the attacks could bring a new Iranian leadership as troubling as the prior regime, emphasizing the conflict’s uncertain outcome. Trump also pledged naval escorts and insurance support for oil tankers and other vessels through the Strait of Hormuz to calm markets. Silver had fallen more than 12% over the last two sessions, pressured by a stronger dollar amid worries that rising energy costs could stoke inflation, prompting investors to reassess the Federal Reserve’s policy path.

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