Silver (XAG/USD) trades lower around $74.60 per troy ounce on Monday at the time of writing, down 0.92% on the day.
The white metal is facing profit-taking after trading near its recent highs, as investors continue to favor the US Dollar (USD) as the primary safe-haven asset amid persistent tensions in the Middle East
Market sentiment remains driven by developments in relations between Washington and Tehran. While hopes for a lasting agreement had initially supported precious metals earlier in the day, several developments have reignited concerns about the outcome of negotiations. According to Iran’s Tasnim news agency, the Iranian negotiating team has suspended message exchanges with the United States (US) through mediators in response to Israeli military operations in Lebanon.
Meanwhile, Iranian Foreign Minister Seyed Abbas Araghchi warned that any violation of the ceasefire between Iran and the US would be considered a breach of the truce across all regional fronts, including Lebanon. These comments come as negotiations remain deadlocked on several key issues, including Iran’s nuclear program and the future status of the Strait of Hormuz. Despite the heightened geopolitical tensions, flows into precious metals remain limited.