- Silver gains support as easing oil prices reduce inflation concerns and expectations for central bank rate hikes.
- Iranian officials are reviewing the US proposal but signaled no willingness to engage in talks with Washington.
- TD Securities strategists say the Fed faces mixed signals as the Iran conflict drives an oil shock.
Silver price (XAG/USD) gains ground after registering small losses in the previous day, trading around $71.50 during the Asian hours on Thursday. Non-interest-bearing Silver finds support as easing oil prices, driven by hopes of Middle East de-escalation, reduce inflation concerns and rate hike expectations.
The White House said talks remain ongoing, with the Trump administration reportedly sending a 15-point proposal to Iran via Pakistan to resolve the conflict. Senior Iranian officials are reviewing the US proposal but have signaled no willingness to engage in talks with Washington. However, Tehran indicated it would reject a US ceasefire offer, instead proposing a five-point plan that includes sovereign control over the Strait of Hormuz.
Traders remain cautious as conflicting statements from the US and Iran over potential peace talks continue to unsettle financial markets. The US has also ordered the deployment of thousands of troops to the Middle East, heightening concerns over a possible ground invasion.
Silver has come under significant selling pressure this month as surging energy prices, driven by disruptions linked to the Iran war, fueled inflation fears and prompted a hawkish shift among major central banks.
TD Securities strategists Oscar Munoz and Eli Nir note that the Federal Reserve (Fed) faces mixed signals as the Iran conflict triggers an oil shock. They add that the US economy remains uneven, with the dual mandate still in tension, and expect the Fed to remain on hold in the near term before potentially cutting rates later in 2026 if conditions permit.
