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Silver prices rose to $85 per ounce on Monday, marking a two-month high, after the U.S. rejected Iran's peace proposal. The rejection heightened geopolitical tensions, boosting demand for safe-haven assets like silver. Traders are now watching whether the $96 level can be recaptured, which would signal stronger bullish momentum. The move reflects broader market anxiety over Middle East stability, which often drives commodity prices.
For traders, this development underscores the importance of monitoring geopolitical risks as key drivers of silver's short-term performance. The rejection of the peace proposal adds to existing uncertainties in the region, potentially prolonging elevated demand for precious metals. However, technical indicators show mixed signals, with some analysts cautioning against overextending long positions without confirmation of a sustained breakout above critical resistance levels.
Looking ahead, investors should track U.S.-Iran diplomatic developments and any follow-up actions from global markets. Central bank policies on inflation and interest rates could also influence silver's trajectory. The $85 level is currently acting as a psychological support, and a sustained break below this could shift sentiment back to bearish territory.
