Silver (XAG/USD) experienced a significant price drop of nearly 3% on Tuesday, driven by escalating tensions in the Middle East. The decline followed Iranian attacks on two vessels in the strategic Strait of Hormuz, a key route for global energy supplies, according to FX Street.
At the time of reporting, silver was trading at $60.26 per ounce, down from an intraday high of about $62.16. The market reaction reflects increased risk aversion among investors amid geopolitical uncertainties in the region.
For Japanese investors, who often view precious metals as a safe haven during periods of international instability, this price movement underscores the sensitivity of silver markets to Middle Eastern geopolitical risks and their potential impact on global commodity flows.