Silver prices fluctuated throughout the week, ultimately ending nearly unchanged as traders weighed geopolitical developments and U.S. inflation data. The market opened near $76.54 and reached a weekly high of $78.82 on Monday, closing at $78.08, its strongest level of the week. This initial rally was driven by reports of a possible U.S.-Iran framework involving a 60-day ceasefire extension, the reopening of the Strait of Hormuz, and renewed nuclear talks, which eased concerns about oil supply disruptions and inflation, providing a short-term boost to silver prices [1].
However, the momentum faded on Tuesday, with silver closing near $76.98, still above the 50 SMA but showing signs of weakness as traders questioned the enforceability of the proposed ceasefire. By Wednesday, silver had dropped about 3% to close near $74.68, falling below the 50 SMA. The main driver of this decline was the persistence of 'higher-for-longer' U.S. Federal Reserve rate expectations, which strengthened the dollar and increased the opportunity cost of holding non-yielding assets like silver [1].
On Thursday, silver tested an intraday low of $71.79 but rebounded to close near $75.65 after the April PCE inflation report showed cooler-than-expected numbers. Headline PCE rose 0.4% month-over-month versus 0.5% expected, and core PCE increased 0.2% versus 0.3% expected. This data temporarily reduced rate hike pressures, allowing silver to recover some losses [1].
By Friday, silver closed near $75.29, nearly flat for the week and still below the 50 SMA. The ongoing U.S.-Iran ceasefire talks remained in focus, with reports of progress on a 60-day extension and a possible reopening of the Strait of Hormuz, though Iranian officials disputed aspects of the U.S. account. This uncertainty contributed to a roughly 11% weekly drop in Brent crude prices, reflecting reduced global shipping risk. Gold, in contrast, closed near $4,540, up about 0.7% on the week [1].
CONCLUSION
Silver prices ended the week largely unchanged as optimism over a potential U.S.-Iran ceasefire and cooler inflation data was offset by persistent concerns about U.S. Federal Reserve rate policy. The market remains sensitive to geopolitical developments and inflation trends, with Fed expectations continuing to play a decisive role in silver's direction.