Silver Rallies on Geopolitics and Fed Hopes

The US Dollar Silver Spot stock surged by +3.1% on Tuesday to trade at 0.01566392, driven primarily by a sharp escalation in geopolitical risk following the expiration of the 60-day U.S.-Iran agreement with no alternative deal secured.

As negotiations with Iran appeared to stall and the lapse of the agreement sent oil prices and U.S. Treasury yields higher, investors turned towards precious metals as a defensive store of value.

A secondary but meaningful factor contributing to silver's rally was Federal Reserve policy expectations, with markets now seeing only a one-in-three chance of a Fed rate hike in September, down from nearly 50% previously.