Silver prices (XAG/USD) rose on Monday, trading at $66.33 per troy ounce, marking a 2.30% increase from Friday's price of $64.84, according to FXStreet data. Despite this uptick, silver prices have declined by 6.69% since the start of the year [1]. The Gold/Silver ratio also fell to 63.40 from 64.09, indicating a relative strengthening of silver compared to gold [1].
The price advance comes after three consecutive days of losses, with silver holding gains near $66.00 during European trading hours [2]. The rise is attributed to easing oil prices and inflation concerns following positive developments in US-Iran diplomatic relations. Mediators Qatar and Pakistan announced from Switzerland that Washington and Tehran have agreed to a formal roadmap for a final peace agreement within 60 days. Iranian Foreign Minister Abbas Araqchi confirmed major concessions, including export waivers for oil and petrochemicals, the release of a portion of Iran's frozen financial assets, and the launch of a domestic reconstruction and development plan [2].
However, the outlook remains uncertain as US President Donald Trump threatened direct strikes on Iran if proxy attacks on Israel persist, casting a shadow over the diplomatic progress and the interim talks between Vice President JD Vance and Iranian officials [2].
Looking ahead, silver may face challenges due to a potential hawkish shift in Federal Reserve policy. Last week's central bank meeting left interest rates unchanged but revealed that 9 out of 19 FOMC members project at least one rate hike this year, with markets actively pricing in a possible increase as early as September [2].
CONCLUSION
Silver prices have rebounded following positive US-Iran peace developments and easing inflation concerns, but the outlook is clouded by geopolitical risks and potential Federal Reserve rate hikes. Investors should monitor ongoing diplomatic negotiations and central bank policy signals for further market direction.