Silver price (XAG/USD) trades 1.85% higher to near $76.30 during the European trading session on Tuesday.
The white metal gains as oil prices have corrected, while uncertainty surrounding the United States (US)-Iran remains intact
As of writing, the WTI Oil price is down 1.8% to near $89.20. There has been an inverse relation between oil and Silver prices since the Middle East war started, as elevated energy prices have prompted US inflation and have forced traders to price out the possibility of the Federal Reserve’s (Fed) interest rate cuts this year. Oil prices dropped following comments from US President Donald Trump on Monday, which signaled that he had forced Israel to stop attacking Iran-backed Hezbollah in Lebanon.
On Monday, several Iranian officials condemned Israel’s attacks on Lebanon and warned of severe consequences to both the US and Israel. Meanwhile, the uncertainty over the US-Iran reaching a deal in the near term has heightened, following headlines from Iran’s Tasnim News agency on Monday that Tehran’s negotiating team has stopped exchanging messages with the US through mediators in response to an escalation of war crimes in Lebanon. On the economic data front, investors await the US JOLTS Job Openings data for April, which will be published at 14:00 GMT.