US Treasury Yields Surge Amid Rising Oil Prices, Tensions in Strait of Hormuz Weigh on Silver

Silver prices retreated on Tuesday, falling to around $60.75 as the US Dollar strengthened and Treasury yields surged.

The rise in US Treasury yields, which climbed to 5.28%, its highest level since 2007, is largely driven by concerns that higher energy prices could keep inflationary pressures elevated in the United States and force the Federal Reserve to maintain a restrictive monetary policy stance.

Tensions surrounding the Strait of Hormuz have also contributed to the increase in Oil prices, which has revived inflation concerns. The lack of significant progress between the US and Iran on key issues means that disruptions around the Strait could persist, keeping energy prices elevated and fueling inflation expectations.