Silver Holds Losses on US-Iran Deadlock

Silver traded near $74 an ounce on Thursday after a sharp decline in the previous session, as ongoing uncertainty surrounding US-Iran peace negotiations kept concerns over inflation and prolonged high interest rates firmly in focus. Key disagreements remain unresolved, including Tehran’s insistence on maintaining control of the Strait of Hormuz and preserving its nuclear program. President Donald Trump also reiterated that the US would not agree to what he called a bad deal and rejected easing sanctions on Iran despite Tehran’s demands for financial relief and an end to attacks. Even if both sides move closer to a deal, elevated energy prices are still expected to fuel inflationary pressures and encourage central banks to keep interest rates higher for longer, rather than proceed with the rate cuts. Silver is currently down about 20% since the conflict began.

Silver prices dropped below $75 an ounce on Wednesday, hitting their lowest level in over a week, as global focus remained on US-Iran negotiations. Oil prices fell, easing inflation fears, after Washington denied the resumption of its "Project Freedom" in the Strait of Hormuz and Iranian officials confirmed indirect talks were underway. Meanwhile, Iranian state media reported that any US-Iran agreement reached within 60 days would be adopted as a binding UN resolution, citing a US draft framework. The proposed deal includes reopening the Strait of Hormuz to commercial vessels within 30 days, ending the US naval blockade of Iranian ports, and joint Iran-Oman management of the strait. However, the White House later denied the report. Silver remains nearly 20% below levels seen at the start of the conflict, as concerns over an energy-driven inflation shock strengthened expectations that major central banks may keep monetary policy tighter for longer.

Silver fell below $76 an ounce on Wednesday, struggling to gain traction as investors remained cautiously optimistic that the US and Iran could still secure a peace agreement despite renewed tensions in the Middle East. President Donald Trump said negotiations to extend a ceasefire and reopen the Strait of Hormuz are continuing, while US Secretary of State Marco Rubio warned that any final agreement may still take several days to complete. At the same time, the US military said it carried out self-defense strikes in southern Iran, while Iran’s Revolutionary Guard claimed it fired at an F-35 fighter jet and multiple drones after they allegedly entered Iranian airspace. Even so, silver prices remain nearly 20% below levels seen at the start of the conflict, as concerns over an energy-driven inflation shock strengthened expectations that major central banks may keep monetary policy tighter for longer.