Silver Extends Downturn

Silver prices fell below $87 per ounce on Thursday, retreating from a three-week high of $91.3 touched on Wednesday, as easing geopolitical premiums and a firm interest rate outlook overshadowed persistent trade uncertainty. Negotiators in Geneva signaled potential progress in US Iran nuclear talks which reduced the immediate safe haven demand that supported prices on Wednesday. Demand for the metal was further capped by a resilient US dollar as January PCE inflation stayed sticky at 3% reinforcing expectations that the Fed will keep interest rates steady. On the supply side regional selling pressure intensified as traders locked in profits following a 3% weekly gain while waiting for clarity on the administration plan to raise global tariffs from 10% to 15% under Section 122. This trade pivot followed a February 20 Supreme Court ruling that invalidated previous emergency duties.

Silver fell toward $87 per ounce on Thursday, retreating from a three-week high of $91.3 touched on Wednesday, as investors weighed upcoming US-Iran nuclear talks and signs that US interest rates could remain on hold for some time. Despite the pullback, the metal is up over 3% for the week, supported by lingering uncertainty over US trade policy and escalating geopolitical tensions. Negotiators from Iran and the US are set for a third round of nuclear talks in Geneva, amid a significant US military build-up in the Middle East, with several countries warning citizens to leave Iran due to potential US strikes. Meanwhile, US Trade Representative Jamieson Greer suggested that tariff rates for certain countries could rise to 15% or higher from the recently imposed 10%, without providing further details. On monetary policy, the Federal Reserve is widely expected to keep interest rates steady next month amid concerns about rising inflationary pressures.

Silver remained above $89 per ounce on Thursday, staying near its highest levels in a month as US tariff uncertainties and geopolitical risks supported demand for safe-haven metals. The metal also drew support from a weaker dollar amid policy uncertainty in Washington, which dampened investor confidence in the reserve currency. On Wednesday, US Trade Representative Jamieson Greer indicated that tariff rates for certain countries could rise to 15% or higher from the recently imposed 10%, without providing additional details. President Donald Trump offered relatively muted tariff commentary in his State of the Union address but signaled no intention to alter course, even after the Supreme Court struck down his broad reciprocal tariffs. Geopolitical developments also influenced the market, with US and Iranian negotiators scheduled for the latest round of nuclear talks in Geneva later today, maintaining a cautious tone among investors.