Silver prices rose nearly 1% on Wednesday to trade around $59.35 per ounce.
Escalating conflict between the U.S. and Iran drove the price increase. Iran-backed Houthi rebels also established a maritime embargo in the Bab el-Mandeb Strait.
Crude oil reached five-week highs on fears of energy supply disruptions. This surge in oil prices is fueling concerns of a new wave of inflation.
Investors expect the Federal Reserve may maintain restrictive monetary policies for longer to combat rising costs. However, geopolitical uncertainty bolstered silver's role as a safe-haven asset, outweighing the bearish pressure of potential interest rate hikes.