Silver Shines Near $60 as Falling Oil Prices Boost Precious Metals

Silver has rebounded to near $60 after falling Oil prices supported precious metals. The white metal rose more than 2% on Tuesday, climbing back towards its earlier highs.

The decline in Oil prices is due to hopes for a US-Iran agreement that would reopen the Strait of Hormuz and ease Energy supplies. This could lead to lower interest rate expectations in the US, weighing on the US Dollar and supporting non-yielding assets like Silver.

A prolonged drop in Energy prices could also help reduce inflationary pressures, reducing the need for the Federal Reserve to tighten its monetary policy stance. However, conflicting statements from Washington and Tehran continue to cloud the outlook.