XAG/USD jumps 2.27% to $59.45 as easing geopolitical tensions weigh on oil prices and inflation expectations.
Silver (XAG/USD) climbed 2.27% to $59.45 on Monday, driven by a sharp drop in oil prices after the US and Iran signaled a pause in military tensions. West Texas Intermediate (WTI) fell nearly 8%, easing inflation concerns and reducing expectations for further monetary tightening by major central banks.
The rally follows statements from US and Iranian officials indicating a temporary halt to hostilities, which bolstered risk sentiment. Lower energy costs and a weaker USD, alongside declining US Treasury yields, provided additional support for the non-yielding metal.
Investors are now focused on the Federal Reserve’s policy decision on Wednesday, where rates are expected to remain unchanged. Markets will scrutinize the statement for clues on future monetary policy amid fading inflation risks.