Spot Silver extended gains on Tuesday as some optimism over de-escalation in the Middle East conflict has crept in.
Yet, the metal was on course for its steepest monthly drop since September 2011 due to a firmer US Dollar and diminishing expectations of Federal Reserve interest rate cuts this year.
US President Donald Trump told aides that he was willing to put an end to the military campaign against Iran even in case the Strait of Hormuz remained largely closed. As a result, Oil prices have pulled back, while easing inflation fears.
However, uncertainty remains high, as Iran has shown little willingness to engage in direct talks. At the same time, media reports indicated that the US was preparing for weeks of ground operations in Iran, after additional troops were deployed in the region.
Traders are no longer expecting two rate cuts by the Federal Reserve this year. Instead, expectations of a potential rate hike have risen, which may keep the US Dollar underpinned and weigh on Silver.
Silver was last up 4.46% on the day to trade at $73.17 per troy ounce.
Still, the white metal has retreated 22.10% so far this month.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
