Spot Silver surged to a 1-week high of $90.01 per troy ounce on Tuesday, after US President Donald Trump signaled the Iran conflict might be nearing an end, which pushed the US Dollar and oil prices lower.
Trump said that the conflict would be resolved “very soon”, while the US military operation in the region was running well ahead of the initial 4 to 5-week estimated timeframe.
The US Dollar Index eased from a more than three-month high of 99.695. A softer dollar makes dollar-priced Silver more appealing to international investors holding other currencies.
The greenback had rallied amid strong safe-haven demand, as the Middle East conflict and rising oil prices sparked fears over prolonged economic disruption and renewed inflation globally.
Non-yielding Silver came under some pressure, as rising energy prices could complicate the Federal Reserve’s policy outlook, while adding to expectations that the central bank may delay interest rate cuts. Investor expectations for the next Fed rate cut have now been pushed back to September or October.
Market players now braced for the key US CPI inflation report this week, which may provide fresh clues over price trends and the Fed’s policy path.
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