Silver prices rise on geopolitical tensions and Fed rate hike expectations, with markets eyeing US-Iran negotiations and monetary policy shifts.
Silver (XAG/USD) extended gains for a second day, trading near $58.70 per troy ounce in Asian hours. Prices were supported by geopolitical risks and shifting Fed policy expectations, as investors monitored US-Iran talks and the Strait of Hormuz situation.
Diplomatic tensions escalated after US President Donald Trump called his latest offer a “last chance” for Iran, while Iranian officials rejected negotiations and warned against foreign military presence. Markets also adjusted Fed rate hike bets, with a 65% chance of a 25 basis point increase priced in.
The metal’s rally reflects demand for non-yielding assets amid uncertainty over both geopolitical and monetary policy outlooks.