Silver traded near $68 per ounce on Tuesday, stabilizing after a sharp intraday rebound in the previous session, as investors assessed the impact of delayed US strikes on Iranian energy infrastructure and the possibility of negotiations to end the conflict. President Donald Trump’s announcement of a five-day postponement of the planned strikes was widely interpreted as an attempt to stabilize oil markets, after benchmark crude prices plunged roughly 10%.
The US dollar and Treasury yields also eased following the announcement, lending further support to precious metals. Still, Tehran denied that any talks were underway, while Israel pressed on with its attacks on Iran. The outcome of any potential negotiations and the prospects for reopening the Strait of Hormuz remain unclear, sustaining elevated inflation risks.
Silver had previously fallen as much as 37% from its March peak, as rising energy prices fueled inflation concerns and strengthened expectations of additional interest rate hikes.
