Key Moments
- Silver (XAG/USD) trades around $70.70, gaining 3.94% and marking its highest level in several days.
- The US Dollar Index (DXY) declines about 0.25% to near 99.55 after opening the week with a bearish gap.
- Traders focus on the upcoming Federal Reserve policy decision while monitoring developments around the US-Iran framework agreement.
Silver Extends Rebound on Softer Dollar
Silver (XAG/USD) is changing hands around $70.70 at the time of writing on Monday, up 3.94% on the session. The metal is pushing higher for a second leg of its recovery, supported by a weaker US Dollar and market positioning ahead of the forthcoming Federal Reserve meeting.
The pullback in the Greenback is enhancing the appeal of Silver for investors operating in other currencies, reinforcing demand and contributing to the latest advance in prices.
US-Iran Framework Lifts Risk Sentiment
Market mood is improving after news that the United States and Iran have agreed on a framework intended to bring an end to the war. US President Donald Trump said that the Strait of Hormuz will be reopened under the arrangement, and Iran’s Deputy Foreign Minister also confirmed the announcement.
Media reports indicate that the ceasefire in place since April is expected to be prolonged, providing additional time for negotiations between the parties.
The more constructive geopolitical backdrop is bolstering risk appetite across asset classes. US equity index futures are moving higher by between 1% and 2%, while Oil prices are dropping sharply amid expectations that reopening the Strait of Hormuz will help restore more normal global energy flows.
Dollar Weakness Supports Precious Metals
Alongside the geopolitical developments, the US Dollar remains under pressure at the start of the week. The US Dollar Index (DXY) is down around 0.25%, trading near 99.55 after beginning the week with a bearish gap.
This dollar softness is providing an additional tailwind for Silver, as its dollar-based pricing becomes relatively more attractive for non-dollar investors.
| Asset / Index | Latest Indication | Move |
|---|---|---|
| Silver (XAG/USD) | $70.70 | +3.94% on the day |
| US Dollar Index (DXY) | Near 99.55 | Approximately -0.25% |
| US equity index futures | Not specified | Advancing between 1% and 2% |
| Oil prices | Not specified | Falling sharply |
Fed Decision in Focus
Investors are also watching the US data docket, with the Fed of New York’s Empire State Manufacturing Survey and Industrial Production figures due later in the day. Nonetheless, the central event for markets is the Federal Reserve’s monetary policy decision later this week, which could offer further indications about the future direction of interest rates.
Lingering Geopolitical Risks Underpin Diversification Demand
Despite the announcement of the framework between Washington and Tehran, uncertainty has not been fully resolved. The complete text of the agreement has yet to be released, and Lebanese media are still reporting strikes in southern Lebanon.
These ongoing geopolitical concerns are helping sustain diversification demand for precious metals, allowing Silver to preserve a constructive bias as the week gets underway.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
