Silver Gains as Geopolitics Drive Risk-On Trade
The silver price (XAG/USD) continues to gain traction, reaching around $58.70 per troy ounce during the Asian hours on Tuesday.
This increase is attributed to non-yielding assets benefiting from geopolitical and economic monitoring.
Investors are closely following developments in US-Iran talks, particularly regarding the potential reopening of the Strait of Hormuz.
US President Donald Trump described his latest offer as a 'last chance' for Iran, but Iranian leadership quickly dismissed the proposal.
General Mohsen Rezaei, an advisor to Iran's Supreme Leader, firmly rejected the conditions and warned that any foreign warships or military forces deployed would be targeted.
In related news, Federal Reserve officials are recalibrating expectations following the central bank's decision to hold interest rates steady in July.
Markets are currently pricing in a 65% chance of a 25 basis point rate hike at the Federal Reserve's upcoming September meeting.