Silver Surges, Gold Held Back by Dollar Strength

Silver prices surged on Tuesday, leading the way for metals as gold's upside was contained due to strength in the US dollar. Spot silver jumped 1.63% to $66.970 an ounce while spot gold was modestly firmer at 0.32%, trading near $4,356.80.

The recent Fed rate repricing and Strait of Hormuz risk premium eased but did not disappear. Iran signaled it could reopen Gulf shipping within days if the US lifts pressure on its ports. Brent crude briefly fell below $98 before settling near $99.25 a barrel, reducing the inflation impulse that supported gold earlier in the conflict.

The dollar's strength kept gold's safe-haven bid partly offset by the market's view that even lower oil does not remove the Fed's inflation problem. Market positioning remains centered on whether the Fed's September rate increase was a one-off adjustment or the start of a renewed tightening phase.