Silver is down by 5%

Silver decreased 5% to 73.784 USD/t.oz

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.

Silver climbed above $78 an ounce on Tuesday, building on the previous session’s advance as optimism grew that the US and Iran could return to negotiations, helping ease some inflation worries. President Trump said he called off a planned strike on Iran scheduled for Tuesday after appeals from Saudi Arabia, Qatar, and the UAE, adding that the Gulf nations believed a deal with Tehran acceptable to Washington was still within reach. Precious metals have been under pressure since the start of the Middle East conflict, as soaring oil prices fueled inflation concerns and reinforced expectations for further central bank rate hikes. Stronger US inflation has also led traders to further reduce expectations for Federal Reserve rate cuts this year, while boosting speculation that the Fed could still deliver a rate hike before year-end. Investors are now focused on the latest FOMC minutes and flash US PMI data for additional clues on the outlook for monetary policy and economic activity.