Silver (XAG/USD) trades around $76.55 on Monday, up 0.80% on the day at the time of writing, as the white metal stabilizes after last week’s heavy sell-off.
The rebound comes as the US Dollar (USD) weakens modestly following renewed optimism surrounding possible diplomatic progress between the United States (US) and Iran
Market sentiment improved after a spokesperson for Iran’s Foreign Ministry confirmed that discussions with Washington remain ongoing. According to Iranian officials, Tehran and Washington are reviewing a recent peace proposal, while technical discussions involving Iran and Oman are focused on restoring safe transit through the Strait of Hormuz. The softer tone surrounding Middle East tensions has reduced demand for the safe-haven US Dollar.
The US Dollar Index (DXY) eases toward the 99.10 area after reaching intraday highs earlier in the day, providing some support for Silver and other precious metals. However, Silver’s recovery remains limited by persistently high global Bond yields and inflation concerns linked to elevated energy prices. The US 10-year Treasury yield holds near 4.6%, close to one-year highs, as investors continue to reassess the outlook for Federal Reserve (Fed) monetary policy.