Silver Drops on Middle East Uncertainty
2026-05-19 04:19
By
Jam Kaimo Samonte
1 min. read
Silver fell toward $74 an ounce on Tuesday, reversing gains from the previous session as heightened uncertainty in the Middle East and persistent inflation concerns weighed on sentiment.
Markets reacted cautiously to President Donald Trump’s remarks hinting at possible progress toward a peace agreement with Iran, with investors remaining skeptical that a resolution to the crisis was near.
Precious metals have been under pressure since the outbreak of the Middle East conflict, as surging oil prices intensified inflation fears and strengthened expectations for further central bank interest rate hikes.
Rising US inflation has also prompted traders to further scale back expectations for Federal Reserve rate cuts this year, while increasing speculation that the Fed could still deliver a rate hike before year-end.
Investors are now awaiting the latest FOMC minutes and flash US PMI readings for additional signals on the outlook for monetary policy and economic conditions.