Silver Prices Rise Toward US$60, Falling Oil Prices Act as Catalyst
Silver prices surged during Tuesday's trading (August 4). The XAG/USD pair traded around US$59.80—up 2.81% for the day—extending its recovery after touching a low of US$56.57 on Monday.
The rise in silver prices was supported by growing demand for the precious metal as investors closely monitored diplomatic developments between the United States and Iran. Hopes for the reopening of the Strait of Hormuz helped alleviate concerns regarding global energy supply disruptions.
Market sentiment improved after US Treasury Secretary Scott Bessent stated that an agreement with Iran to reopen the Strait of Hormuz could be reached as early as Tuesday or Wednesday. He also noted that energy prices could fall further if the deal is successfully concluded.
These comments caused WTI oil prices to drop by more than 3% as the market began anticipating a gradual normalization of global energy supplies. Lower oil prices could help ease inflationary pressure, thereby reducing the need for the Federal Reserve to further tighten monetary policy.
In terms of market impact, the decline in oil prices and easing expectations regarding Federal Reserve interest rate hikes served as positive drivers for silver. If the US dollar also weakens, XAG/USD has the potential to maintain its upward momentum. However, silver price movements remain volatile, given the mixed signals Washington and Tehran have sent regarding US-Iran negotiations. (asd)
Source: Newsmaker.id
