Silver Falls as Rate Hike Expectations Weigh

2026-06-29 12:11 By Joana Ferreira 1 min. read

Silver fell toward $58 an ounce on Monday, hovering near its lowest level since December 2025 and on track for a monthly drop of over 20%, as uncertainty surrounding US-Iran peace talks has heightened inflation concerns and strengthened expectations of Federal Reserve interest rate hikes.

The US and Iran agreed to halt Gulf hostilities and resume negotiations over the Strait of Hormuz.

US President Donald Trump disclosed that Tehran requested a meeting with an American delegation in Qatar on June 30, following Iran’s missile and drone attacks on US military sites in Kuwait and Bahrain.

Trump had previously warned Iran of severe repercussions if it failed to uphold a peace deal.

Like gold, silver, often seen as an inflation hedge, loses its appeal in high-rate environments due to its lack of yield.

Markets are now pricing in three Fed rate hikes this year, with a 60% probability of a September increase.

Investors are also awaiting critical US jobs data later this week.



News Stream
Silver Jumps as Investors Track US-Iran Diplomacy Efforts
Silver jumped more than 4% to $59 an ounce on Tuesday as investors monitored diplomatic efforts to ease the US-Iran conflict and assessed the implications for oil prices, inflation, and the Federal Reserve’s policy path. Reports suggested mediators are working to restart negotiations between Washington and Tehran, with a possible 10-day truce being discussed to help secure shipping routes through the Strait of Hormuz. The recent escalation pushed oil prices to a more than one-month high, intensifying concerns over renewed inflationary pressures. Some US policymakers have argued that rates may need to stay elevated for longer, or even rise further, to contain inflation. While the Fed is expected to hold rates steady next week, markets are pricing in more than a 60% chance of a rate hike in September.
2026-07-21
Silver is up by 5%
Silver increased 5% to 59.212 USD/t.oz
2026-07-21
Silver Jumps as US-Iran Talks Eyed
Silver climbed above $58 an ounce on Tuesday, rebounding from recent losses as investors assessed the potential resumption of peace negotiations between the US and Iran, which could ease energy-driven inflation risks and reduce concerns about interest rate hikes. Mediators worked on Monday to bring both sides toward a new ceasefire, while reports pointed to a possible 10-day truce. However, tensions remained elevated after President Donald Trump warned that Iran would be held responsible for the deaths of three US service members. Iran-backed Houthi militants also announced a maritime embargo against Saudi Arabia, raising concerns over energy shipments through the Red Sea. US Treasury yields climbed sharply this week, with markets now pricing in about a 55% chance of a Federal Reserve rate hike in September, up from 51% a day earlier.
2026-07-21