Silver Surges to Seven-Week High Amid Precious Metals Rally

Silver prices surged to a seven-week high on Tuesday, reaching around $66 an ounce. The climb in silver was part of a broader precious metals rally, driven by improving investment demand despite rising inflationary risks and expectations for interest rate hikes.

The white metal is also benefiting from robust industrial demand tied to expanding production of solar panels and electricity grids. In fact, recent data showed Chinese imports of silver-bearing ores surged 62.5% annually in June to 219,000 tonnes.

Investors are keeping a close eye on the market, however, as uncertainty persists over a potential deal between the US and Iran to end the war and reopen the Strait of Hormuz. This has kept markets wary of inflation and the outlook for interest rates.