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.