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Silver prices rose 1.69% to $65.90 on Monday, ending a three-day decline, driven by renewed investor interest amid diplomatic progress between the U.S. and Iran. The white metal's gains were partially offset by expectations of a hawkish Federal Reserve, which could limit further upside. Geopolitical tensions often drive demand for safe-haven assets like silver, but the Fed's potential rate hikes remain a key headwind.
The move highlights the delicate balance between geopolitical risks and monetary policy in commodity markets. Traders are weighing the impact of U.S.-Iran relations on global energy markets and inflation, while the Fed's stance on inflation and employment data will dictate the dollar's strength against silver. A weaker dollar typically supports bullion prices.
For markets, the coming weeks will be critical as investors monitor Fed statements for clues on rate path adjustments and assess whether U.S.-Iran diplomacy can ease supply chain concerns. Silver's technical resistance at $67.50 and support at $64.00 will also be key levels to watch for trend confirmation.
