FX.co ★ Silver Struggles at $70 as Middle East Tensions, Fed Policy Bite

Silver traded near $70 per ounce on Tuesday, fluctuating between modest gains and losses amid conflicting signals over a potential diplomatic breakthrough in the Middle East. President Trump delayed planned US airstrikes on Iran, citing "positive talks," a characterization Iran dismissed as "psychological warfare," even as reports suggested the possibility of indirect negotiations.

Geopolitical risks intensified after the Wall Street Journal reported that Saudi Arabia and the UAE could enter the conflict, while an Israeli official told CNN that a ceasefire remains "out of reach" due to Iran’s refusal to compromise. Israel’s defense minister reaffirmed that the country would "continue striking Iran with full force."

Against this backdrop, silver remained near its lowest level since December, weighed down by rising energy costs and mounting inflation concerns. With Fed rate cuts now ruled out for 2026, markets are bracing for further monetary tightening from other major central banks.