Silver prices tumbled Tuesday, dropping 2.31% to trade near $65.05 per ounce as traders extended their selloff of the precious metal. The retreat comes as crude oil prices stage a rebound, reigniting concerns about persistent inflation that could keep central bank rates elevated for longer than markets previously anticipated.
The correlation between rebounding energy costs and silver’s decline reflects shifting risk sentiment across commodity markets. Higher oil prices typically fuel inflation expectations, reducing the appeal of non-yielding precious metals like silver while strengthening the case for continued monetary tightening. The move represents a notable pullback for silver, which had been riding elevated prices amid recent market volatility.
Traders across commodity desks and forex markets are closely monitoring the interplay between energy prices and precious metals as they reassess positions heading into midweek trading. The dynamic could signal broader repositioning in inflation-hedge assets.
FXnCO Insight
Traders should watch crude oil momentum closely—sustained energy price strength will likely pressure silver further and may trigger stops below the $65 support level.
Source: FXStreet