Silver Prices Rise on Hopes for Hormuz Reopening, but Fail to Reach Recent Highs

Silver prices advanced by 2% on Tuesday to around $59.50 per troy ounce, but failed to reach recent highs as it remains in a tight range.

The metal's price was influenced by the potential reopening of the Strait of Hormuz, which could impact demand for safe-haven assets like silver. Reports suggested that an announcement regarding the waterway's reopening is expected soon, with some sources indicating arrangements for a full reopening could be confirmed within hours.

While a reopening would remove support from defensive flows during the conflict, it would also lead to cheaper energy and improved global trade conditions, favoring industrial activity. Roughly half of silver demand is tied to industrial applications, so a durable easing of supply disruptions supports the medium-term consumption outlook.

The JOLTS report showed vacancies falling to 7.359 million in June from the revised 7.537 million and below the 7.4 million forecast, indicating continued cooling in labor demand and tempering the message delivered by Monday's strong ISM Manufacturing Purchasing Managers Index (PMI). Softer labor demand trims the odds of further Federal Reserve tightening, easing the opportunity cost of holding non-yielding assets.