Silver Pressured by Middle East Tensions

Silver traded below $75 an ounce on Wednesday after plunging more than 5% in the previous session, as escalating tensions between the US and Iran kept markets focused on inflation risks and the likelihood of higher interest rates. President Donald Trump warned that the US could resume strikes on Iran within “two or three days” if Tehran failed to accept Washington’s peace terms. The comments came shortly after Trump said he had canceled a planned attack following appeals from Gulf allies, while Iran’s nuclear program continued to be a key obstacle in negotiations. The prolonged conflict has effectively kept the vital Strait of Hormuz closed to shipping traffic, pushing oil prices higher and adding to inflationary pressures. Silver has also surrendered gains recorded earlier this month that were fueled by optimism surrounding AI-related stocks and stronger demand for metals used in data-center infrastructure.

Silver decreased 5% to 73.784 USD/t.oz

Silver fell toward $74 an ounce on Tuesday, reversing gains from the previous session as heightened uncertainty in the Middle East and persistent inflation concerns weighed on sentiment. Markets reacted cautiously to President Donald Trump’s remarks hinting at possible progress toward a peace agreement with Iran, with investors remaining skeptical that a resolution to the crisis was near. Precious metals have been under pressure since the outbreak of the Middle East conflict, as surging oil prices intensified inflation fears and strengthened expectations for further central bank interest rate hikes. Rising US inflation has also prompted traders to further scale back expectations for Federal Reserve rate cuts this year, while increasing speculation that the Fed could still deliver a rate hike before year-end. Investors are now awaiting the latest FOMC minutes and flash US PMI readings for additional signals on the outlook for monetary policy and economic conditions.