Silver Futures Plummet on Trump's Iran Rejection

Silver futures plummeted 4.8% on Monday to $61.725, its lowest level in over a month, following President Trump's rejection of Iran's proposal to reopen the Strait of Hormuz and end the conflict.

The rejection led to a surge in oil prices above $100 a barrel, stoking fresh inflation concerns and triggering a broad selloff across precious metals.

Market analysts pointed out that this is just one part of a more challenging macroeconomic backdrop for silver, as the Federal Reserve delivered its first rate hike in three years last week, lifting the federal funds rate to 3.75%, 4.00%. The markets are now pricing in roughly a 70% probability of another increase at the October meeting.

The strong dollar and surging energy prices created a hostile environment for silver, with technical selling from forced liquidations of crowded speculative long positions amplifying the downward move.