XAG/USD climbs over 2% on reduced inflation fears after oil prices drop 5.6% amid paused US-Iran military actions.
Silver prices (XAG/USD) jumped to near $60.00 in Asian trading Monday, rising over 2% as diplomatic progress between the US and Iran eased geopolitical tensions. The pause in military aggression sent West Texas Intermediate (WTI) oil prices down 5.6% to around $84.00, reducing concerns over prolonged inflation and potential central bank rate hikes.
The metal had underperformed in recent months as Middle East conflict drove oil higher, lifting inflation expectations and diminishing demand for non-yielding assets. With the Federal Reserve expected to hold rates steady in Wednesday’s announcement, investors are monitoring technical levels, including the 20-day Exponential Moving Average at $59.35.
The 14-day Relative Strength Index (RSI) rose toward mid-40s, signaling modest momentum recovery rather than a definitive trend shift. Market focus remains on Fed policy and geopolitical developments for further direction.