Silver Rebounds as Iran Proposal Boosts Hopes of Opening Energy Routes
Silver prices rebounded and climbed back above $76 per ounce on Monday, reversing earlier session losses after reports emerged that Iran had submitted a new proposal to the US to reopen the Strait of Hormuz and end the war. This recovery reflects the metals market's swift response to a shift in diplomatic headlines that has impacted energy and inflation risks.
The proposal was reportedly delivered through Pakistani mediators, with the main point being an extension of the ceasefire to pave the way for a more permanent end to the conflict. The same report also stated that nuclear discussions would be postponed until the US blockade of the strait is lifted, shifting market focus to normalizing shipping lanes and energy supplies.
Earlier in the same session, gold briefly weakened after US President Donald Trump canceled a planned trip by a senior envoy to resume talks in Islamabad. Iran also reiterated its position that Tehran would not negotiate under the threat or condition of a blockade, leaving the diplomatic path still fragile and heavily influenced by headline dynamics.
Despite silver's rebound, fundamental pressures have not completely dissipated. The prolonged conflict has increased inflation risks through the energy channel, leading to market expectations pointing to higher interest rates for longer or potential additional tightening—an environment that typically presents a headwind for non-yielding precious metals.
Therefore, silver remains potentially volatile, driven by two key factors: the credibility of diplomatic developments related to opening energy channels, and the strength of the inflation narrative shaping central bank policy expectations. As long as these two factors remain unsettled, silver tends to be sensitive to any updates on the negotiation path. (asd)*
Source: Newsmaker.id
