Silver prices (XAG/USD) rose nearly 4% after previous losses, trading around $78.50 per troy ounce during Asian hours on Monday, supported by growing optimism over a potential US-Iran agreement that could ease geopolitical tensions and inflation concerns [1]. According to a report by Axios citing a US official, the United States and Iran are close to signing an agreement involving a 60-day ceasefire extension, reopening the Strait of Hormuz, and Iran clearing mines to allow free passage of ships. In exchange, the US would lift its blockade on Iranian ports [1].
However, complications persist as Reuters, citing Iran’s Tasnim news agency, reported that the US government is still obstructing certain clauses of the agreement, particularly regarding the release of blocked Iranian assets [1]. US Secretary of State Marco Rubio told the New York Times that while the agreement has regional support, a comprehensive nuclear deal could not be achieved quickly or carelessly, tempering immediate expectations [1].
Market participants are also closely monitoring the Federal Reserve’s policy outlook. Federal Reserve Governor Christopher Waller indicated that he no longer believes the central bank should retain an easing bias in its official policy statement, adding complexity to the global economic landscape and influencing investor sentiment toward non-yielding assets like silver [1].
The combination of geopolitical developments and shifting Fed policy signals has contributed to silver’s recent gains, as investors seek safe-haven assets amid ongoing uncertainty [1].
CONCLUSION
Silver prices have rebounded strongly on optimism surrounding a potential US-Iran deal and ongoing reassessment of Federal Reserve policy direction. While the market remains supported by these developments, unresolved issues in the US-Iran negotiations and cautious Fed signals suggest continued volatility ahead.