Silver tumbles over 3% amid escalating Middle East conflict

Silver prices extended their downward trajectory on Monday, with futures falling more than 3% to around $58 an ounce after renewed US-Iran hostilities triggered a sharp rally in crude oil prices, intensifying inflation concerns and strengthening expectations of further Federal Reserve policy tightening. Elevated oil prices, coupled with a firmer US dollar amid heightened safe-haven demand, weighed heavily on non-yielding precious metals. Market participants are now awaiting this week's US inflation data and Fed Chair Kevin Warsh's congressional testimony for further clarity on the Federal Reserve's interest-rate trajectory. In the domestic market, MCX silver futures also declined sharply, slipping below Rs 2,18,000 per kg, a fall of more than Rs 4,000.

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