Silver Rebounds as Middle East Ceasefire Hopes Offset Hawkish Fed Tone

2026-05-28 15:04 By Joana Ferreira 1 min. read

Silver climbed back above $74 an ounce on Thursday after briefly hitting a four-week low, as investors balanced renewed hopes of progress in Middle East peace talks against lingering inflation pressures and a cautious Federal Reserve outlook.

According to Axios, US and Iranian negotiators have reportedly agreed on a 60-day memorandum of understanding to extend a ceasefire and open negotiations on Iran’s nuclear program, though final approval from President Trump is still pending.

Despite the tentative diplomatic progress, tensions remain high, with continued US–Iran exchanges and Israel resuming strikes on Hezbollah targets in Lebanon amid a fragile ceasefire.

Meanwhile, elevated energy prices sustain inflation risks and dampen expectations for near-term rate cuts.

Fed officials maintained a cautious stance, with Lisa Cook supporting steady rates for now but signaling openness to hikes if inflation accelerates, while John Williams warned inflation could rise toward 4% in the near term.



News Stream
Silver Rebounds as Middle East Ceasefire Hopes Offset Hawkish Fed Tone
Silver climbed back above $74 an ounce on Thursday after briefly hitting a four-week low, as investors balanced renewed hopes of progress in Middle East peace talks against lingering inflation pressures and a cautious Federal Reserve outlook. According to Axios, US and Iranian negotiators have reportedly agreed on a 60-day memorandum of understanding to extend a ceasefire and open negotiations on Iran’s nuclear program, though final approval from President Trump is still pending. Despite the tentative diplomatic progress, tensions remain high, with continued US–Iran exchanges and Israel resuming strikes on Hezbollah targets in Lebanon amid a fragile ceasefire. Meanwhile, elevated energy prices sustain inflation risks and dampen expectations for near-term rate cuts. Fed officials maintained a cautious stance, with Lisa Cook supporting steady rates for now but signaling openness to hikes if inflation accelerates, while John Williams warned inflation could rise toward 4% in the near term.
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Silver Extends Decline on US-Iran Tensions
Silver dropped below $74 an ounce on Thursday, briefly touching a four-week low as reports of fresh US strikes on an Iranian military site clouded the outlook for peace negotiations, keeping inflationary and interest rate concerns in focus. Key disagreements also remain unresolved, including Tehran’s insistence on maintaining control of the Strait of Hormuz and preserving its nuclear program. President Donald Trump 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 more than 20% since the conflict began.
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