Spot Silver extended gains to a fresh 3-week high of $82.12/oz. amid optimism the US and Iran may be nearing a peace deal.
This has, to an extent, eased concerns over elevated inflation and prolonged period of high interest rates.
Media reports stated that Washington and Tehran were working towards a one-page memorandum to put an end to the confrontation in the Gulf, while tricky issues such as Iran’s nuclear programme would be left for later.
Still, according to the Wall Street Journal, citing a senior Iranian official, the Islamic country would not allow the US to reopen the Strait of Hormuz with “an unrealistic plan”.
Brent prices held in proximity to the $100 per barrel mark.
Elevated energy costs have added to global inflation expectations and kept central bank policy makers wary of adopting a more dovish stance. In turn, the reduced probability of near-term interest rate cuts by central banks has weighed on Silver, which pays no interest.
Investors now braced for the key US Non-Farm Payrolls report later in the day, which may provide fresh clues on the Federal Reserve’s monetary policy trajectory.
Employers in all sectors of the US economy, excluding farming, probably added 62,000 job positions in April, according to market consensus, following a job growth of 178,000 in March.
Spot Silver was last up 2.24% on the day to trade at $80.23 per troy ounce.
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