XAG/USD drops 1.35% amid renewed energy supply concerns after Iran targets ships in the Strait of Hormuz.
Silver (XAG/USD) fell 1.35% to near $61.00 in Asian trading Tuesday, extending losses as oil prices rose. The decline follows reports that Iran fired missiles at commercial vessels in the Strait of Hormuz, a key global energy chokepoint, stoking fears of supply disruptions and inflationary pressures.
The metal underperformed during recent Middle East tensions, as rising energy costs fueled expectations of tighter monetary policy. Higher interest rates weigh on non-yielding assets like silver. Markets now await the Federal Reserve’s June FOMC minutes on Wednesday for clues on future rate moves.
XAG/USD last traded at $61.50, maintaining a downward trajectory amid broader macroeconomic uncertainty.