Silver Prices Hit Mid-March Highs on US-Iran Ceasefire Hopes

Silver prices rose above $80 per ounce on Friday, marking their highest level since mid-March and setting course for a weekly gain of over 7%, as optimism over a potential US-Iran peace deal helped ease fears that stubborn inflation could prolong high interest rates. Even after a recent exchange of fire, the most serious test of their month-long ceasefire, Iran reported the situation had normalized, and US President Donald Trump affirmed the ceasefire was still "in effect." Investors also reacted to the latest US jobs data, which showed the economy added 115,000 jobs last month, exceeding forecasts of 62,000 and signaling resilience in the labor market. Since the war began in late February, silver has fallen nearly 14%, weighed down by rising oil prices that amplified inflation concerns and complicated the interest rate outlook.

Silver climbed above $80 an ounce on Friday after experiencing sharp volatility in the previous session, even as renewed clashes between the US and Iran weakened hopes for a near-term peace agreement and reignited inflation concerns. US Central Command said American forces intercepted Iranian attacks and launched defensive strikes while guided missile destroyers moved through the Strait of Hormuz, while stressing that the military does not seek further escalation. Meanwhile, the Trump administration is awaiting Iran’s response to a proposal aimed at reopening Hormuz and ending the nearly 10-week conflict, with reports indicating that Tehran is expected to respond through Pakistan within the next two days. Still, silver remains down over 15% since the conflict began, as the effective closure of the Strait of Hormuz triggered a historic surge in energy prices, fueling inflation fears and strengthening expectations that central banks may need to raise interest rates.

Silver climbed toward $79 an ounce on Thursday, extending gains from the previous session as hopes for a US-Iran agreement triggered a sharp decline in oil prices and helped ease inflation worries. Reports indicated that the US had sent a one-page memorandum of understanding through Pakistani mediators aimed at formally ending the conflict and potentially allowing the gradual reopening of the Strait of Hormuz. Tehran is expected to respond in the coming days after confirming it was reviewing a US peace proposal, while more comprehensive negotiations over Iran’s nuclear program are reportedly expected later. Oil prices tumbled, easing concerns over inflationary pressures and reducing expectations that central banks would need to maintain restrictive policies for longer. Still, Federal Reserve Bank of Chicago President Austan Goolsbee warned that inflation has not continued to cool toward the US central bank’s 2% target and has instead accelerated since the outbreak of the war.