Silver price (XAG/USD) is down over 1% to near $75.00 during the European trading session on Monday.
The white metal extends its two-day massive decline as rising oil prices due to fears of the United States (US)-Iran war resumption have promoted global inflation expectations further
During the day, the WTI Oil price jumped to near $103.86, the highest level seen so far this month. Oil prices have increased further amid fears of a prolonged closure of the Strait of Hormuz, following threats from US President Trump that Iran would face serious consequences, through a post on Truth Social, if it doesn’t agree to a deal. “For Iran, the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them. TIME IS OF THE ESSENCE!” Trump wrote over the weekend.
Escalating global inflation projections have boosted bond yields, a scenario that bodes poorly for non-yielding assets, such as Silver. As of writing, 10-year US Treasury Yields are up 0.43% to near 4.62%. 10-year UK gilt yields jump 3% to near 5.19%, the highest level seen since the sub-prime crisis; however, rising UK political uncertainty has also strengthened them. Meanwhile, traders have also priced out expectations of interest rate cuts by the Federal Reserve (Fed) this year.