Silver extended its rally for a fourth session on Wednesday, approaching $60 an ounce as investors returned to precious metals amid worsening threats to two critical Middle East shipping routes.
Spot silver gained 1.9% to $59.87 in Asian trading, reaching its highest level since July 10.
Gold, platinum and palladium also advanced, suggesting the move reflected broader demand across the precious-metals complex rather than an isolated surge in the white metal.
The rally came despite Brent crude climbing above $92 and continuing concerns that higher energy costs could keep US monetary policy restrictive.
Silver’s advance reflects growing demand for tangible assets as the US-Iran conflict threatens shipping through both the Strait of Hormuz and the Bab el-Mandeb.
Traffic through Hormuz fell further on Tuesday, with no very large crude carriers or liquefied natural gas tankers recorded crossing the waterway.
Saudi crude tankers also reversed course in the Red Sea after Yemen’s Iran-aligned Houthis threatened ships using Saudi ports.
Even without a complete closure, higher insurance premiums, longer routes and the threat of further attacks can raise transport and energy costs.
That uncertainty is supporting silver alongside gold, particularly after last week’s heavy losses created an opportunity for bargain hunters.
Silver’s rally differs from gold’s because the metal is also heavily used in electronics, solar equipment and other advanced manufacturing applications.
The latest advance has coincided with a recovery in semiconductor shares and continued optimism around technology investment.
Silver rose strongly alongside tech-led equity gains on Tuesday, highlighting how its industrial role can reinforce investment demand when confidence in growth-sensitive assets improves.
That relationship can work in both directions. A prolonged energy shock could squeeze manufacturers, delay capital spending and weaken physical consumption.
Silver may therefore benefit from geopolitical stress while markets believe the economic damage will remain manageable, but it could underperform gold if the conflict develops into a broader global growth shock.
The immediate technical focus is the $59.70-$60 region, which has repeatedly capped recent recovery attempts.
A sustained break above $60 would strengthen the rebound and could bring the next resistance zone around $60.60-$61 into view.
Failure to clear that barrier could trigger profit-taking, with $59 and then $58 providing the first areas of support.
The Federal Reserve’s July 28-29 meeting remains another constraint.
Policymakers are already in their customary communications blackout period, leaving traders to assess whether elevated oil prices will influence the central bank’s inflation outlook without fresh official guidance.
For now, silver has regained momentum.
Extending the rally will require haven demand and industrial optimism to overpower the continuing pressure from elevated rates and energy-driven inflation risks.