Silver Rises on US-Iran Truce Hopes

Silver climbed above $76 an ounce on Wednesday amid growing hopes that the US-Iran conflict could soon be resolved, after reports indicated that President Trump said a deal with Iran was in its “final stages”. The prospect of easing geopolitical tensions helped push oil prices lower for a second consecutive session, fueling expectations that the inflationary impact of the recent energy shock may remain contained and reducing pressure on central banks to raise interest rates further. Those expectations persisted despite minutes from the Fed’s April FOMC meeting showing that a majority of policymakers believe additional rate hikes could be necessary if inflation remains persistently above the Fed’s 2% target. Still, markets broadly expect the Fed to keep interest rates unchanged for the remainder of the year, although traders currently see roughly a 50% chance of a rate hike in December.

Silver climbed above $76 an ounce on Wednesday amid hopes that a potential resolution to the US-Iran conflict could ease inflation concerns. President Donald Trump stated the war with Iran would end "very quickly," while Vice President JD Vance highlighted progress in talks with Tehran to end hostilities. However, the prolonged conflict has kept the Strait of Hormuz closed, maintaining oil prices above $100 a barrel and sustaining inflationary pressures. Accelerating US inflation has led traders to further reduce expectations for Federal Reserve rate cuts this year, while reinforcing speculation that the central bank could still raise rates before year-end. Markets now price in a 40% chance of a December rate hike, with rate cut expectations pushed into 2027 on hopes the current inflation surge is temporary. Investors will also analyze the minutes from the Fed’s April policy meeting for further insights.

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.