Silver prices (XAG/USD) declined after opening with a gap up, trading around $75.40 per troy ounce during Asian hours on Monday, though the metal remained in positive territory overall [1]. The drop in silver prices was attributed to easing safe-haven demand as traders assessed ongoing progress in peace negotiations between the United States and Iran [1].
A Bloomberg report cited by the article stated that Donald Trump announced the United States would begin guiding neutral ships trapped in the Persian Gulf out through the Strait of Hormuz starting Monday, aiming to help civilian vessels from non-aligned countries resume normal operations [1]. Mediation efforts to end the conflict have continued as the situation in Iran enters its third month. Iran is reportedly reviewing Washington’s response to its latest 14-point proposal, which has increased optimism for a diplomatic resolution, although Trump suggested Tehran’s proposal may not meet expectations [1]. Axios reported that Iran has proposed a one-month deadline for talks to reopen the Strait of Hormuz and end both the US naval blockade and conflicts in Iran and Lebanon [1].
The article notes that silver, as a non-yielding asset, faced headwinds due to the Middle East conflict, which has driven energy prices higher and increased inflation risks. This has raised concerns that central banks may keep interest rates elevated for longer or even tighten policy further, which typically weighs on silver prices [1].
No specific analyst opinions or forward-looking statements were provided in the article, but the overall tone suggests cautious optimism regarding a potential diplomatic resolution, which could further reduce safe-haven demand for silver [1].
CONCLUSION
Silver prices slipped below $75.50 per ounce as easing safe-haven demand followed signs of progress in US-Iran peace negotiations. The market remains sensitive to geopolitical developments and central bank policy expectations, with further diplomatic advances likely to reduce demand for silver as a safe-haven asset.