Silver Prices Plummet Amid Rising Oil Costs

Silver prices retreated on Tuesday, falling to around $65.05 as the white metal corrected from its seven-week high of $66.59 reached on Monday.

The decline in Silver was largely due to rising Oil prices and concerns over inflation in the United States, which are supported by the ongoing negotiations between Oman and Iran aimed at reopening the Strait of Hormuz.

Oil prices have surged since the beginning of the week, with West Texas Intermediate (WTI) trading around $81.20, up more than 5% from Monday's levels.

The increased energy prices are reviving concerns about US inflation and fueling expectations of further monetary tightening by the Federal Reserve, with the CME FedWatch tool now estimating a 52% chance of a 25-basis-point interest rate hike at the September meeting.