Silver rose to around $89 per ounce on Tuesday, rebounding after briefly slipping below $80 in the previous session. The advance was underpinned by a weaker US dollar, as growing expectations for a swift resolution to the war in Iran reduced safe-haven demand for the greenback.
US President Donald Trump stated that the US military operation in Iran is nearing completion and progressing well ahead of the original four- to five-week estimate. He also signaled plans to suspend oil-related sanctions and to deploy the US Navy to escort tankers through the Strait of Hormuz, in an effort to stabilize and contain oil prices.
The dollar had previously strengthened on safe-haven flows, outperforming precious metals as the conflict in the Middle East and sharply higher oil prices fueled concerns over extended economic disruption and a resurgence of inflation.
Looking ahead, investors are focused on upcoming US inflation data for additional insight into price dynamics, though the figures are not expected to fully capture the economic impact of the Iran war.
