Silver Gains as More US-Iran Talks Eyed

Silver climbed toward $76 per ounce on Tuesday, rebounding from the previous session’s losses as the US and Iran signaled willingness to resume negotiations aimed at securing a longer-term ceasefire before the current two-week truce lapses. President Donald Trump said Tehran had reached out to Washington just hours after the US initiated a naval blockade on Iranian oil shipments in the Strait of Hormuz. Iranian President Masoud Pezeshkian also indicated readiness to continue peace discussions, provided they remain within the framework of international law and regulations. Oil prices retreated on hopes for a potential longer-term deal, easing inflationary concerns and tempering expectations that central banks will keep interest rates on hold or even hike them. Despite the uptick, silver remains down nearly 20% since the conflict began.

Silver dropped below $75 an ounce on Monday, paring gains from last week as US plans to blockade the Strait of Hormuz following failed weekend talks with Iran heightened concerns over a worsening global energy crisis. The restrictions will apply only to vessels entering or leaving Iranian ports starting at 10 a.m. Eastern Time. Negotiations in Pakistan failed to produce an agreement, with the US accusing Tehran of refusing to curb its nuclear ambitions, while Iran reportedly sought control of the strait, war reparations, a regional ceasefire, and access to frozen overseas assets. The effective shutdown of the critical shipping route has driven energy prices sharply higher and intensified inflation risks, reinforcing expectations that central banks may delay rate cuts or even tighten policy further. This dynamic has weighed on silver, which remains down more than 20% since the conflict began.

Silver climbed to $75.6 per ounce Friday, heading for a third consecutive weekly gain, lifted by a weaker dollar and investor focus on US-Iran diplomatic talks in Islamabad. The metal surged over 4% this week, further supported by expectations of earlier and deeper US interest rate cuts, which bolster demand for non-yielding assets. A two-week US-Iran ceasefire helped drive a sharp drop in oil prices, easing fears of resurgent inflation. However, the fragile truce faced pressure Friday, as Israeli strikes on Lebanon and Strait of Hormuz disruptions threatened negotiations. The latest US CPI report, the first since the conflict, showed inflation at 3.3%, the highest since May 2024, with a 0.9% monthly jump, the steepest since mid-2022. Markets now price in a 30% chance of at least a 25-basis-point rate cut by the Federal Reserve in December.