Silver Sets New Record High

Silver traded near $75.6 per ounce on Monday, stabilizing after a more than 6% drop the previous week, as investors remained cautious ahead of stalled US-Iran peace talks and a packed week of economic data and central bank meetings. Reports suggest Iran submitted a new proposal to the US to reopen the Strait of Hormuz and ease tensions, after US President Donald Trump canceled a planned diplomatic trip to Islamabad. The ongoing impasse has driven oil prices higher, intensifying inflation worries and reinforcing expectations that central banks may hold or even increase interest rates to combat rising price pressures. While major central banks, including the Federal Reserve, are widely expected to leave rates unchanged this week, markets will scrutinize any hints of heightened concern over inflation risks tied to the US-Iran conflict.

Silver climbed back above $76 an ounce on Monday, reversing losses from earlier in the session after reports emerged that Iran had submitted a new proposal to the US aimed at reopening the Strait of Hormuz and ending the war. The proposal, reportedly delivered via Pakistani mediators, called for extending the ceasefire to allow progress toward a permanent end to hostilities, while deferring nuclear negotiations until the US blockade of the strait is lifted. Earlier in the session, gold had fallen after US President Donald Trump cancelled a planned trip by senior envoys to resume talks with Iran in Islamabad, while Tehran reiterated it would not engage in negotiations under threats or blockade conditions. Despite the rebound, silver remains under pressure overall as elevated inflation risks stemming from the Middle East conflict reinforce expectations that central banks may keep interest rates higher for longer or potentially tighten further.

Silver traded below $76 an ounce on Monday, holding losses from last week as attempts to revive US–Iran peace negotiations faltered and the Strait of Hormuz remained effectively closed, heightening concerns over persistent inflationary pressures. US President Donald Trump cancelled a planned trip by top envoys to resume talks with Iran in Islamabad, while Tehran reiterated it would not engage in negotiations under threats or blockade. Meanwhile, oil prices rallied as the Middle East conflict entered its ninth week, triggering what the IEA has characterized as the largest energy supply shock on record. Elevated inflation risks have strengthened expectations that central banks may keep interest rates higher for longer or even tighten further, weighing on non-yielding precious metals. The US Federal Reserve is also expected to proceed cautiously, with gradual rate cuts anticipated under incoming Chair Kevin Warsh.