Silver rose to $75.60 per ounce on Friday, set for a third consecutive weekly gain, supported by a weaker US dollar and investor attention on US–Iran diplomatic talks in Islamabad. The metal has climbed more than 4% this week, buoyed by expectations of earlier and more substantial US interest rate cuts, which tend to increase demand for non-yielding assets.
A two-week ceasefire between the US and Iran has contributed to a sharp decline in oil prices, easing concerns about a renewed surge in inflation. However, the fragile truce came under strain on Friday, as Israeli strikes in Lebanon and disruptions in the Strait of Hormuz threatened to derail negotiations.
The latest US CPI report, the first since the outbreak of the conflict, showed annual inflation at 3.3%, the highest since May 2024, with a 0.9% month-on-month increase—the steepest rise since mid-2022. Money markets now assign roughly a 30% probability to at least a 25-basis-point rate cut by the Federal Reserve in December.
