Silver prices rise as traders bet on a potential US-Iran agreement, easing geopolitical tensions and boosting demand for non-yielding assets.
Silver (XAG/USD) advanced 0.5% to $75.75 in European trading Monday, driven by hopes of a US-Iran peace deal. US President Trump indicated Iran seeks an agreement, though military options remain on the table. Revised terms include halting Tehran’s nuclear program and reopening the Strait of Hormuz.
The metal has traded sideways between $71.79 and $78.83 over the past two weeks but remains below its 20-day EMA at $76.92, signaling a bearish near-term outlook. Oil’s rebound amid Middle East tensions has historically pressured silver, as higher energy costs stoke inflation and reduce dovish Fed expectations.
Investors now await Friday’s US Nonfarm Payrolls data for May, which could influence Fed policy bets and silver’s trajectory.