XAG/USD rises 1.8% amid lower oil prices and expectations of eased US-Iran tensions over the Strait of Hormuz.
Silver prices climbed 1.8% to $60.95 in Asian trading on Wednesday, nearing a monthly high. The rally follows a 0.8% drop in WTI oil to $73.80, driven by optimism over a potential US-Iran deal resolving tensions in the Strait of Hormuz, a key global energy chokepoint.
Lower oil prices have eased inflation concerns, reducing expectations of central bank rate hikes. This shift benefits non-yielding assets like silver. US officials suggested a deal could be reached as soon as this week, though markets remain cautious about navigation freedoms in the strait.
Investors are also awaiting July’s US Nonfarm Payrolls data for Fed policy cues. Today’s ADP Employment Change report, due at 12:15 GMT, will offer an early signal.