Silver rose 4% to about $74 per ounce on Wednesday, advancing for a third consecutive session amid growing optimism over a possible resolution to the prolonged conflict in the Middle East. Sentiment improved on reports that the United States was pursuing talks with Iran. Israeli media reported that Washington was seeking a one-month ceasefire to enable negotiations, while the New York Times said the US had sent Tehran a 15-point proposal aimed at ending the conflict.
This more positive mood persisted even after President Donald Trump ordered the deployment of roughly 2,000 additional troops to the region, as his administration considered ways to curb Iran’s influence over the Strait of Hormuz.
Silver had earlier tumbled as much as 37% from its March high, pressured by elevated energy prices linked to the war with Iran. Those higher energy costs stoked inflation worries and strengthened expectations that major central banks could raise interest rates this year. Federal Reserve Governor Michael Barr noted that the Fed may need to keep interest rates elevated for an extended period to bring inflation under control.
