Silver Prices Whipsawed by Geopolitical Tensions

The silver market saw significant volatility on Tuesday, closing higher after a day marked by sharp dips and rebounds. The metal's price dropped to $57.59 per ounce before rising to $59.28, a gain of $1.42.

The turmoil was sparked by reports of an attack on a freighter in the Strait of Hormuz, a critical chokepoint for oil and commodity flows. This incident heightened geopolitical tensions and sent risk premiums soaring, driving investors back into safe-haven trades like silver.

Despite the recent gains, technical analysts are cautious about the metal's prospects. Silver remains below its 50-day moving average of $62.12, with a year-to-date decline of over 17%. The Relative Strength Index (RSI) is at 46.2, indicating a neutral reading.