XAG/USD climbs to $58.20 as renewed peace talks ease geopolitical tensions and weigh on oil prices.
Silver prices rose above $58.00, trading at $58.20 per troy ounce in Asian trading on Monday. The gain follows President Trump’s announcement that US-Iran peace talks will resume, reducing fears of military escalation in the Middle East.
The shift in sentiment sent oil prices lower, easing inflation concerns and providing relief to investors wary of aggressive Fed tightening. Markets are now pricing a 68% chance of a 25 basis point rate hike in September, despite the Fed’s recent decision to hold rates steady.
Investors are also focusing on upcoming US labor market data, including Friday’s jobs report, which could influence the Fed’s next move. Analysts note that gold’s outlook remains constrained by US monetary policy expectations.