Delayed US-Iran agreement weighs on silver prices ahead of critical US CPI data next week shaping Fed policy expectations.
Silver prices pared gains late Tuesday after a potential US-Iran deal failed to materialize as expected. The metal had rallied on reports that Qatari mediators drafted agreement language, with US Treasury Secretary Janet Yellen suggesting a deal could have been announced by Tuesday. The delay triggered profit-taking near key resistance levels.
Prior to the pullback, silver climbed on hopes the deal would ease geopolitical tensions and reopen the Strait of Hormuz, a critical chokepoint for oil shipments. The market now turns to next week’s US CPI report, which will influence September’s FOMC decision. A higher-than-expected print could revive Fed rate hike bets, pressuring silver.
Technical resistance at $28.60 and a major downward trendline capped the rally. Sellers remain active near these levels, while buyers await a breakout to target new highs.