FX.co ★ Silver Rises After 2-Day Decline

Silver rose more than 1% to trade above $83 per ounce on Wednesday, rebounding after two consecutive sessions of losses, as persistent hostilities in the Middle East heightened fears of a prolonged regional conflict. The US-Israeli war on Iran entered its fifth day, with Israel on Tuesday striking a building where clerics had gathered to select a new Supreme Leader. US President Donald Trump warned that the conflict could usher in an Iranian leadership as troubling as the previous regime, underscoring the uncertainty surrounding the outcome. He also pledged naval escorts and insurance support for oil tankers and other vessels transiting the Strait of Hormuz in an effort to stabilize markets. Silver had slumped more than 12% over the previous two sessions, weighed down by a stronger US dollar, as concerns that rising energy prices could fuel inflation led investors to rethink the Federal Reserve’s policy trajectory.