Silver Slips as Trump Rejects Iran Response

Silver prices fell below $80 an ounce on Monday, giving back part of last week’s gains after President Donald Trump rejected Iran’s response to his peace proposal as “TOTALLY UNACCEPTABLE,” sustaining concerns over inflationary pressures. Reports indicated that Tehran had offered to move part of its highly enriched uranium stockpile to a third country, while refusing to dismantle its nuclear facilities. Meanwhile, renewed attacks across the Middle East over the weekend threatened to undermine a fragile ceasefire that took effect in early April. The Strait of Hormuz also remains effectively closed as Washington and Tehran continue to struggle toward a diplomatic resolution to the conflict, keeping energy prices elevated and intensifying inflation concerns. That strengthened expectations that central banks may raise interest rates further to contain price pressures, a development that tends to weigh on precious metals.

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.