Silver Price Jumps Over 2% as US-Iran Diplomacy Hopes Spark Oil Price Plunge

The silver price (XAG) surged over 2% to near $60 in early Asian trading on Monday, as renewed hopes for US-Iran diplomacy sent oil prices sharply lower.

The pause in military aggression between the two countries came after US ambassador to the UN, Mike Waltz, told Fox News that President Donald Trump had decided to halt US attacks to allow more time for diplomacy, according to Reuters reports.

A sharp decline in oil prices reduced concerns of elevated inflation expectations, easing fears of higher interest rates by global central banks. The WTI Oil price traded 5.6% lower to near $84.00.

Silver's recent underperformance was partly due to the onset of the Middle East war, which boosted oil prices and diminished its appeal as a safe-haven asset due to higher interest rates.