Silver Plunges 5% Amidst Middle East Tensions, Strong Dollar, and Fed Policy Fears

• Silver prices crashed by 5%, trading around $85 per ounce, despite rising Middle East tensions.
• Unlike typical safe-haven rallies, silver fell due to a strengthening US dollar and anticipation of strict Fed policy.
• The US dollar gained strength, making dollar-denominated silver more expensive and reducing demand.
• Better-than-expected US manufacturing PMI data indicated a strong US economy, increasing the likelihood of prolonged high interest rates.
• Upcoming statements from Fed officials could further impact silver if a hawkish stance on interest rates is signaled.