Spot Silver surged to a 1-month high above $96.20/oz. on Monday after the US and Israel initiated massive strikes on Iran, leading to the death of Supreme Leader Ayatollah Ali Khamenei and escalating geopolitical tensions. This has triggered a rush into safe-haven assets.
Iran responded by targeting US assets across the region, including the United Arab Emirates, Bahrain, Saudi Arabia, Kuwait, Jordan, Qatar, Syria and Iraq.
These events led to the effective closure of the Strait of Hormuz, which is a crucial route for nearly one-fifth of global oil shipments.
Israel on Monday also launched attacks against Iran-backed Hezbollah militants in Lebanon.
“The situation remains highly uncertain and the escalation further fuels the bullish mood in the gold and silver markets, providing support to prices and stability to a portfolio at a time of heightened volatility in financial markets,” Julius Baer analyst Carsten Menke was quoted as saying by Reuters.
In terms of macro data, this week’s focus will likely set on US labor market data prints, including the ADP employment, weekly jobless claims and the key Non-Farm Payrolls reports.
Investors are currently expecting the first rate cut, out of potential three, by the Fed for this year to occur as early as June.
Spot Silver was last up 1.90% on the day to trade at $95.55 per troy ounce.
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