Silver Rebounds, But Rally Fades
Silver prices (XAG/USD) pared their intraday gains on Wednesday (March 25th) and consolidated after initial optimism regarding US-Iran ceasefire efforts subsided. XAG/USD was last trading around $72.93 per ounce, up from its previous close.
Silver's earlier gains were driven by reports that Washington had submitted a 15-point plan to pave the way for an end to the conflict. The easing of the geopolitical risk premium temporarily dampened inflationary pressures on the energy side, reducing the urgency of monetary policy tightening and supporting non-yielding metals like silver.
However, this boost was short-lived after Iran signaled its rejection of the proposal. Several reports, including those citing state media, reported that Tehran asserted that the war would end on its own terms, including demands for a halt to attacks and killings, guarantees of a non-recurrence of the conflict, compensation for war damages, a cessation of hostilities on all regional fronts, and recognition of its control of the Strait of Hormuz.
This persistent uncertainty maintained demand for the US dollar, while energy risks remained a key channel for global inflation. The combination of a strong dollar and market sensitivity to oil prices limited further buying in silver, although bargain hunting interest emerged after a sharp correction earlier in the week.
The market will next monitor the direction of escalation and diplomacy in the Middle East, oil price volatility, and shifts in global interest rate expectations—three variables that will determine whether silver's recovery sustains or loses momentum again.
Source: Newsmaker.id
