Silver Holds Gains

Silver hovered around $59 per ounce on Thursday, staying close to a nearly two-week high as safe-haven demand and bargain hunting helped counter concerns that rising oil prices could keep US interest rates elevated Investors continued to monitor geopolitical developments after Iran-backed Houthi militants claimed attacks on two Saudi oil tankers in the Red Sea, a key route for Saudi crude exports, heightening fears of broader energy supply disruptions. President Donald Trump also warned of strikes on Iranian infrastructure if shipping through the Strait of Hormuz is attacked, adding to concerns over a wider military conflict. Despite recent gains, bullion remained well below its January record high as elevated oil prices reinforced expectations that inflation could keep interest rates higher for longer. Markets currently price in two 25 bps rate hikes by March 2027, with a 70% probability that the first move will come as early as September.

Silver climbed to $60 an ounce on Wednesday, its highest level since July 10, as safe-haven demand and technical buying gained momentum amid escalating Middle East tensions and ahead of next week's Federal Reserve meeting. Geopolitical concerns intensified after President Donald Trump warned of further strikes on Iran and pledged retaliation if Iran-backed Houthi rebels disrupt shipping through the Red Sea. Meanwhile, Secretary of State Marco Rubio said the US remains open to a deal with Iran but questioned whether Tehran is willing to accept terms acceptable to Washington. Despite the rally, silver remained below the record highs reached in January, as elevated oil prices have reinforced inflation concerns and expectations that the Federal Reserve may need to keep monetary policy restrictive. Markets currently price in two 25-basis-point rate hikes by March 2027, with about a 70% probability of the first increase coming as early as September.

Silver climbed above $59 an ounce on Wednesday, extending gains from the previous session as investors continued to monitor Middle East uncertainties and rising oil prices and their impact on inflation and interest rates. President Donald Trump downplayed the chances of near-term talks with Iran and warned of additional strikes, lifting oil prices. Iran-backed Houthi rebels in Yemen also disrupted shipping through the Red Sea, while a series of attacks on the Caspian Pipeline Consortium terminal along Russia’s Black Sea coast added to supply concerns. Meanwhile, ADP data showed US private employers added an average of 16,500 jobs per week over the four weeks ending July 4, down from an average weekly gain of 19,250 in the prior four-week period, marking a fourth straight slowdown in hiring. Markets widely expect the Federal Reserve to leave interest rates unchanged at next week’s meeting, while pricing in more than a 55% chance of a rate hike in September.