Silver futures rallied Monday. Prices for September delivery climbed toward $60 an ounce.
A pause in military hostilities between the U.S. and Iran drove the increase. This caused crude oil prices to tumble. It also eased near-term inflation fears.
The sharp drop in energy costs led to a weaker U.S. dollar. It also caused a decline in Treasury yields. This environment makes non-yielding, dollar-denominated assets like silver more attractive to investors. It reduces the opportunity cost of holding the precious metal.
Traders tempered expectations for aggressive Federal Reserve interest rate hikes. This occurred ahead of the central bank's upcoming policy meeting.