Silver Breaks Above $60 as Strait Reopening Hopes Reshape Fed Expectations

Silver prices have broken above $60 as investors bet that the inflation shock from the Middle East may prove less severe than feared. The immediate catalyst has been growing optimism over a potential reopening of the Strait of Hormuz, which would ease concerns over global energy supplies.

Falling oil prices are rapidly reshaping Federal Reserve expectations, pulling Treasury yields lower and giving precious metals room to advance. Record highs in US equities and improving risk sentiment have also contributed to silver's renewed strength.

The real driver behind silver's strength lies in its industrial demand, which makes up roughly half of the metal's total demand. A credible reopening of the Strait would not only reduce inflation fears but could also improve expectations for global manufacturing, trade, and industrial production.