Silver: XAG Holds Losses.

Silver dropped roughly 2% to trade below $71.6 per ounce on Tuesday as the market adopted a defensive stance ahead of President Trump’s 8 p.m. ET deadline for the reopening of the Strait of Hormuz. This decline persists despite reports that Iran has suspended direct ceasefire negotiations in response to Trump's civilization threats while confirming overnight US strikes on military assets at Kharg Island and the Yahya Abad bridge. While silver traditionally functions as a safe haven its allure is being systematically dismantled by a surging US dollar and a shift in Federal Reserve expectations from rate cuts to potentially restrictive hikes to curb energy led inflation. High oil prices are fueling stagflation fears which has pressured non yielding assets and left silver 25% below pre war levels. Furthermore the metal's performance is being hindered by forced liquidations as investors cover losses in other sectors amid the escalating Middle East conflict.