Silver Heads for Third Weekly Gain

Silver held above $75 per ounce on Friday and was on track for a third straight weekly advance, as the US-Iran ceasefire prompted a sharp drop in oil prices and eased fears of renewed inflation and further interest rate hikes. The metal also found support from a weaker dollar, which had stood out as the top safe-haven asset during the crisis. Investors shifted focus to upcoming diplomatic talks in Islamabad this weekend, where Vice President JD Vance will lead a US delegation in meetings with Iranian officials. Meanwhile, Israeli Prime Minister Benjamin Netanyahu reiterated that ongoing operations in Lebanon fall outside the scope of the US-Iran ceasefire, even as Washington prepares to host additional talks next week with Israel and Lebanon to push broader truce efforts. US President Donald Trump also warned Iran over imposing transit fees in Hormuz, criticizing its management of oil shipments.

Silver climbed to $74.5 per ounce on Thursday, reflecting investor concerns over the fragile US-Iran ceasefire and escalating Middle East conflict. A weaker dollar added to the upward momentum as traders assessed whether the ceasefire would hold. With key disputes unresolved and the Strait of Hormuz remaining closed, tensions intensified after US President Donald Trump warned of major escalation if Iran rejects a deal. Meanwhile, Israel’s deadliest attack in Lebanon, killing over 250, prompted Tehran to threaten retaliation. Since the war began on February 28, silver has declined nearly 20%, as surging oil prices and fears of energy-driven inflation reduced expectations of US interest rate cuts in 2026.

Silver slipped to around $73.5 per ounce on Thursday following sharp swings in the previous session, as investors weighed a fragile Middle East ceasefire amid sporadic clashes and ongoing uncertainty over the reopening of the Strait of Hormuz. Iranian media reported that oil tanker traffic through the strait had been halted after Israeli strikes on Lebanon, while a senior Iranian official said three provisions of the ceasefire proposal had already been breached. Meanwhile, US Vice President JD Vance indicated the strait may start reopening as he leads a US delegation to Islamabad for direct talks with Iran. Oil prices rebounded slightly, and the dollar and bond yields edged higher, keeping downward pressure on precious metals. On Wednesday, silver surged as much as 6.3% following the ceasefire announcement before surrendering nearly all gains as investors took profits amid a broader risk-on rally in global equities.