Silver Edges Up as Falling Oil Prices Ease Inflation Concerns

Silver prices edged up on Monday, gaining 0.37% to trade around $66.50. This positive note comes despite a stable US Dollar (USD), with the US Dollar Index (DXY) trading virtually unchanged at 100.25.

The precious metal's advance is partly due to falling Oil prices, which provide some support to Silver as lower energy costs ease concerns about inflationary pressures and the prospect of US interest rates remaining elevated for longer.

Investors remain focused on developments in the Middle East and their implications for energy prices. The decline in Oil prices follows increased hopes of renewed dialogue between Washington and Tehran, with US President Donald Trump indicating he would be open to meeting Iranian President Masoud Pezeshkian at the UN General Assembly this week.

However, tensions remain elevated in the Middle East, with Iranian security official Mohsen Rezaei warning that Iran would respond strongly to another US attack. The prospect of further military action keeps geopolitical risks in focus.