Silver (XAG/USD) trades around $70.70 at the time of writing on Monday, up 3.94% on the day.
The white metal is extending its rebound and benefiting from a backdrop marked by a weaker US Dollar (USD) and expectations surrounding the upcoming Federal Reserve (Fed) meeting
Markets are welcoming news that the United States (US) and Iran have reached a framework agreement designed to bring an end to the war. US President Donald Trump stated that the Strait of Hormuz will be reopened as part of the deal, while Iran’s Deputy Foreign Minister also confirmed the announcement. According to several media reports, the ceasefire that has been in place since April is expected to be extended, allowing both sides to continue negotiations.
The improvement in the geopolitical environment is supporting risk appetite across financial markets. US equity index futures are advancing between 1% and 2%, while Oil prices are falling sharply following expectations that the reopening of the Strait of Hormuz will help normalize global energy flows. At the same time, the US Dollar (USD) remains under pressure.