Spot Silver dropped more than 4% on Thursday, tracking a slide in Gold, as market players were looking for more vivid signs of progress in Middle East de-escalation efforts.
US President Donald Trump said Iran was desperate to reach an agreement to end the almost 1-month long war.
However, Iran has turned down a US-backed 15-point framework aimed at ending the conflict in the Middle East and has dismissed the prospect of talks with Washington. According to an anonymous official from the Islamic Republic, quoted on an English-language TV broadcast, Iran’s government has its own conditions for any peace agreement, AP reports.
The US has increased its military presence in the region, adding to fears of further escalation and underpinning the US Dollar’s safe-haven appeal.
At the same time, disruptions to Iran’s energy infrastructure persisted, while the Strait of Hormuz faced effective closure risks. Crude prices remained elevated, fueling inflation concerns and reinforcing the case for tighter monetary policy.
Markets now expect the Federal Reserve will likely hold rates higher for longer. Higher interest rates tend to increase the opportunity cost of holding Silver, which pays no interest.
Spot Silver was last down 4.17% on the day to trade at $68.21 per troy ounce.
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