FX.co ★ Silver Plunges Over 7%

Silver futures fell more than 7% on Tuesday, slipping below $83 per ounce, as a stronger US dollar and mounting inflation concerns dampened demand for safe-haven assets despite intensifying geopolitical tensions. The greenback strengthened as investors sought safety amid surging energy prices tied to the conflict in the Middle East.

Rising fuel costs have also stoked inflation fears, pushing bond yields higher and prompting markets to reassess the Federal Reserve’s policy outlook. Expectations for the next Fed rate cut have been pushed back from July to September, although markets still anticipate two 25-basis-point cuts in total.

At the same time, the US military is expected to escalate strikes against Iran, potentially targeting missile production facilities, drones, and naval assets. In response, a senior Iranian official warned that vessels attempting to transit the Strait of Hormuz could be targeted, threatening to halt tanker traffic through this critical chokepoint amid heightened security risks.