FX.co ★ Silver Holds Gains on US-Iran Optimism

Silver traded above $79 an ounce on Wednesday after jumping more than 5% in the previous session, buoyed by rising optimism that the US and Iran could reach a deal to end the conflict and thereby reduce the risk of an energy-driven inflation shock. Washington and Tehran are reportedly working to arrange a second round of peace talks in the coming days, after negotiations broke down last weekend. The US is maintaining its naval blockade of Iranian oil exports in the Strait of Hormuz, while Iran is weighing a temporary halt to shipments through the route as a possible step toward securing an agreement. At the same time, crude oil prices fell back below $90 per barrel and the dollar index slipped to a six-week low, providing additional support to precious metals. Markets have also scaled back expectations for more aggressive monetary tightening, as the Federal Reserve takes a wait-and-see approach while it reassesses inflation risks.