Spot Silver gained for a third straight trading day on Wednesday after recent sell-off, underpinned by a softer US Dollar, as diplomatic efforts between the US and Iran have, to an extent, improved sentiment.
Israeli media stated that Washington was seeking a 1-month ceasefire in order to enable negotiations. At the same time, the New York Times said that the US had sent Iran a 15-point proposal to resolve the confrontation. The proposal includes measures aimed at restricting Iran’s ability to develop nuclear weapons and prohibiting uranium enrichment activities on Iranian territory.
In addition, US President Donald Trump delayed planned strikes on Iran’s energy infrastructure, while Iran reportedly offered concessions related to energy flows through the Strait of Hormuz.
A ceasefire could pave the way for a normalization of energy flows through the key waterway. Such an outcome would likely reduce perceived supply disruptions, exert downward pressure on oil prices and prompt traders to scale back hawkish expectations for policy tightening by global central banks.
A softer dollar makes dollar-priced Silver more appealing to international investors holding other currencies.
Silver was last up 2.15% on the day to trade at $72.74 per troy ounce.
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