Spot Silver lost some ground on Monday, as there has been no progress in US–Iran peace talks, which drove oil prices up, stoking concerns of elevated inflation and prolonged period of high interest rates.
US President Donald Trump over the weekend rejected Iran’s response to a US proposal for peace negotiations, which cooled optimism over an imminent end to the conflict.
According to the Wall Street Journal, Iran rejected US demands to dismantle nuclear facilities and halt uranium enrichment for 20 years. Trump responded by labeling the Iranian position as “totally unacceptable.”
Brent prices again rose above $100 per barrel, as the Strait of Hormuz remained closed, leading to tight energy supplies.
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.
Goldman Sachs now projects Federal Reserve interest rate cuts in December 2026 and March 2027, compared to a prior forecast of September and December.
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