Silver: XAG Heads for 20% Monthly Loss.

Silver prices hovered around $58 an ounce on Tuesday, near their weakest level since December 2025, with losses exceeding 20% for both the month and the quarter, as a firm US dollar and expectations of US interest rate hikes continued to weigh on the metal. Rising energy prices, fueled by the Middle East conflict, have eliminated expectations of Federal Reserve rate cuts this year, with traders now pricing in a near 65% chance of a September hike. Although precious metals are traditionally seen as inflation hedges, higher interest rates tend to pressure non-yielding assets like silver. Focus now turns to upcoming US employment data, including nonfarm payrolls, and remarks by Fed Chair Kevin Warsh due Wednesday for signals on monetary policy. Meanwhile, investors are monitoring prospects for renewed US-Iran diplomacy, though Iran has dismissed reports of talks in Doha this week as unfounded.