Silver Soars to Two-Month High Amid Iran Tensions and Rate Hike Expectations
Silver prices surged to their highest level in over two months on Monday, reaching $66.6 as investors continued to monitor developments in the Middle East. The precious metal's gains came despite a stronger US dollar, which typically puts downward pressure on silver prices.
The recent tensions between Iran and the US have kept markets on edge, with both sides exchanging fresh threats over the weekend. This uncertainty has contributed to oil prices extending their decline at the start of the week, easing concerns over prolonged inflationary pressures.
In a related development, traders are pricing an 88% probability of a US rate increase in December, according to the CME FedWatch Tool. The Federal Reserve and Bank of Japan have already raised interest rates this month, signaling further tightening in the global monetary policy landscape.