Silver shines near $60 as falling Oil supports precious metals

Silver prices have risen near $60 as oil prices fell, providing a boost for precious metals. The price of silver (XAG/USD) was at $59.80 at the time of writing, up 2.81% on the day. This increase followed a low of $56.57 on Monday, thanks to a growing demand for precious metals as investors keep an eye on the diplomatic talks between the United States and Iran.

US Treasury Secretary Scott Bessent mentioned that a resolution to reopen the Strait of Hormuz might be reached as early as Tuesday or Wednesday. Additionally, energy prices are anticipated to decrease if an agreement is reached, which would help bring down inflation and potentially lead to a reduction in the Federal Reserve's monetary policy tightening.

Lower interest rates typically weaken the US Dollar, which in turn supports non-yielding assets like silver. Investors are closely monitoring the Middle East situation, as conflicting statements continue to create uncertainty in the markets. Technical analysis shows that XAG/USD is currently trading at $59.74, with strong support levels around $58.62, $58.16, and $58.11.

The near-term outlook remains bullish, with potential resistance at $60.09 and a possible higher target at $60.94.