Silver (XAG/USD) extended its winning streak, trading around $76.00 per troy ounce during Asian hours on Friday, supported by easing rate hike bets and a sharp drop in oil prices following the US–Iran ceasefire [1]. The ceasefire reduced inflation concerns and the likelihood of further central bank rate hikes, which benefited the non-interest-bearing metal [1]. Additionally, a subdued US Dollar earlier in the week made silver more attractive to foreign buyers, although gains may be capped as the Greenback steadied amid renewed risk aversion due to uncertainty about the ceasefire's longevity [1].
Market sentiment remains cautious, as Israel continues strikes on Hezbollah, despite Prime Minister Benjamin Netanyahu's statement that Israel will soon begin direct negotiations with Lebanon [1]. US President Donald Trump announced that US forces will stay deployed around Iran until full compliance with the agreement is achieved [1]. Traders are now focusing on expected diplomatic talks in Islamabad this weekend, where US Vice President JD Vance may lead the American delegation in meetings with Iranian officials, though there is no official confirmation of delegates’ arrival as of Friday [1].
The Federal Reserve's March Meeting Minutes show policymakers are taking a wait-and-see approach, noting that inflation risks linked to higher oil prices are becoming more balanced [1]. The upcoming US Consumer Price Index (CPI) report, due later in the North American session, is seen as a key catalyst for near-term Fed policy direction [1].
Overall, silver's price movement is being driven by geopolitical developments, central bank policy expectations, and currency fluctuations. The market is awaiting further clarity from diplomatic talks and US economic data, which could influence silver's trajectory in the near term [1].
CONCLUSION
Silver prices have risen to near $76.00 per troy ounce, buoyed by easing rate hike expectations and geopolitical developments surrounding the US–Iran ceasefire. Market sentiment remains cautious, with traders awaiting diplomatic outcomes and US economic data for further direction. The near-term outlook for silver hinges on these evolving factors.