Silver Gains on US-Iran Diplomacy Hopes

Silver climbed above $80 an ounce on Thursday, marching toward one-month highs as investors assessed the outlook for renewed negotiations and a potential long-term peace deal between the US and Iran that could help ease inflation pressures. Reports suggested Washington and Tehran are considering extending their two-week ceasefire to allow more time for talks, even as the Strait of Hormuz remains effectively closed under a dual blockade. Attention is now shifting to a possible second round of US-Iran discussions, expected to focus on reopening the strait and Iran’s nuclear enrichment program. Precious metals have drawn support in recent weeks as diplomatic progress in the Middle East reduced concerns over inflation and possible central bank tightening. However, silver remains nearly 15% lower since the conflict began.

Silver traded at $79.3 per ounce on Wednesday, near a one-month high, as investors weighed progress in US-Iran peace talks against lingering economic and supply challenges. Mediators reported advances in extending the ceasefire, though uncertainty persists after the US announced plans to deploy 10,000 more troops to the region. A weaker dollar, hovering near six-week lows, provided support for silver, while the Federal Reserve’s cautious approach to inflation has eased expectations of aggressive monetary tightening. Despite these tailwinds, silver has dropped about 15% since the Iran conflict began, as higher interest rates reduce demand for non-yielding assets. Adding to supply concerns, the Silver Institute and Metals Focus warned of a sixth consecutive year of structural deficit, with 762 million troy ounces drawn from stocks since 2021, raising the risk of a liquidity squeeze. Industrial demand is forecast to decline 3% to 640 million ounces in 2026.

Silver increased to 79.67 USD/t.oz, the highest since March 2026. Over the past 4 weeks, Silver lost 1.45%, and in the last 12 months, it increased 142.43%.