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Silver climbs back above $60 as Hormuz hopes cool rate outlooks
Optimism about reopening the Strait of Hormuz has eased energy fears, dragging Treasury yields lower and supporting a broader precious metals rally that also benefits silver’s industrial demand.
Silver has moved back above $60 as hopes for a near term reopening of the Strait of Hormuz ease concerns about global energy supplies, helping drive a renewed rally in precious metals. According to Action Forex, the immediate push for silver is linked to softer oil prices, which in turn is reshaping Federal Reserve rate expectations. As Treasury yields fall, precious metals gain room to advance, and investors increasingly appear to be pricing a smaller Middle East inflation shock than they did just a week ago.
Action Forex also points to silver’s industrial demand angle, noting that silver can benefit not only from monetary easing expectations but also from the possibility of stronger industrial demand if trade disruptions begin to ease. The piece cites optimism after comments from US Treasury Secretary Scott Bessent that an agreement to reopen the Strait of Hormuz could be reached as early as this week. It also references reports that negotiations are progressing, including US and European countries pressing Oman to finalize a temporary arrangement with Iran, and a statement from US Central Command that commercial traffic through the southern shipping lane has remained operational despite Iranian harassment, while also stressing that Iran has not publicly endorsed a permanent reopening.
Latest closeSilver $59.77 ▲3.7%