Silver prices rebounded above $70 on Monday after signs of a possible diplomatic opening between the US and Iran sparked a sharp recovery across precious metals. Earlier in the session, the metal had slumped toward $61, its lowest level since mid-December, as surging oil prices and increasingly hawkish signals from central banks triggered a broad-based liquidation. The announcement of a five-day pause in planned strikes on Iranian energy infrastructure, however, offered much-needed relief for non-yielding assets.
Although Tehran has downplayed reports of meaningful progress in the talks, the US administration’s move indicates a growing priority on containing energy-driven inflation, which has been weighing on global risk sentiment. As a result, the safe-haven premium on silver is now being reassessed, with traders evaluating the potential implications of a coordinated approach to managing security and trade flows through the Strait of Hormuz.
