Silver Steadies Ahead of US-Iran Talks

Silver steadied near $80 an ounce on Tuesday after coming under pressure in the previous session, as investors looked ahead to a second round of negotiations between the US and Iran before their two-week ceasefire expires this week. Vice President JD Vance is expected to lead the US delegation in Pakistan once again, while Iran is also reportedly preparing to send representatives, reversing earlier signals that it would not join further negotiations. Meanwhile, President Donald Trump said he is unlikely to extend the existing truce if no agreement is reached before its expiration, adding that the Strait of Hormuz will remain closed until a deal is secured. The Middle East conflict has triggered a historic energy supply shock that heightened inflationary risks and raised the likelihood of central bank rate hikes, which have weighed on precious metals. Still, silver remains down about 15% since the Iran war began.

Silver dropped nearly 2% toward $79 an ounce on Monday, trimming gains from the previous week as renewed hostilities in the Strait of Hormuz drove oil prices sharply higher, intensifying inflation concerns. In the latest escalation, President Donald Trump said the US Navy fired on and seized an Iranian-flagged cargo vessel in the Gulf of Oman after it ignored warnings to halt while departing Hormuz. Tehran also targeted ships and reasserted control over the Strait, arguing that the US blockade on Iran-linked vessels breached the ceasefire agreement. Meanwhile, Trump indicated there was still an opportunity for a deal ahead of another round of talks in Pakistan, although Iran sees little prospect for an agreement. The prolonged conflict has sparked a historic energy supply shock, heightening inflation risks and raising the likelihood of further central bank rate hikes, which weighed on precious metals. The white metal remains down about 15% since the war began.

Silver increased 5.01% to 82.338 USD/t.oz