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Silver rises toward $56.90 as safe-haven demand grows
The rally comes as Middle East tensions escalate, with the Fed hike probability for September at 55.3% and oil rebounding toward $82 a barrel.
Silver climbed toward $56.90 per troy ounce on Monday, adding 1.62% as safe-haven demand supported prices, according to FXStreet.
FXStreet cited renewed worries tied to Middle East developments, including a ninth consecutive night of US strikes against Iranian targets and a warning from Tehran that the ceasefire is effectively over. It also pointed to Yemen's Houthis announcing a naval blockade against Saudi Arabia, which raised fears of additional disruptions to regional energy trade.
As the risk backdrop intensified, WTI oil rebounded from daily lows to near $82.00 per barrel, increasing concern about renewed inflationary pressures. FXStreet said these expectations are also tied to Fed rate outlooks, including comments from Cleveland Fed President Beth Hammack that inflation remains persistent.
Despite a typical headwind from higher rates, Silver retained a bullish bias, with FXStreet noting the CME FedWatch tool assigns a 55.3% chance of a Fed rate hike in September. It added that investors may still favor Silver as a store of value and a hedge during high-inflation periods.
Latest closeSilver $55.72 ▼2.4%|WTI crude $79.00 ▼0.8%