Silver Surges Near $60 as Oil Prices Drop Amid US-Iran Tensions

Silver prices rose to nearly $60 on Tuesday as investors sought safe-haven assets amidst tensions between the US and Iran. The white metal gained 2.81% on the day, rebounding from a low of $56.57 hit on Monday.

US Treasury Secretary Scott Bessent's comments that an agreement with Iran to reopen the Strait of Hormuz could be reached as soon as Tuesday or Wednesday sparked market optimism. He also stated that energy prices are expected to 'settle back down' if a deal is reached, causing West Texas Intermediate (WTI) US Oil to drop over 3%.

The decline in oil prices has implications for the Federal Reserve's monetary policy stance, with lower interest rate expectations weighing on the US Dollar. This could provide additional support for non-yielding assets like Silver.

However, conflicting statements from Washington and Tehran continue to cloud the outlook, making it difficult to predict the outcome of diplomatic developments.