Ceasefire Breakdown Pressures Silver, Dollar Holds Downward
Silver (XAG/USD) traded within a narrow range during the European session on Thursday (April 9), trading around US$74.1 per troy ounce after retreating from Wednesday's peak of US$77.65.
Prices lost steam as market caution returned to the initial signs of a breakdown in the US-Iran ceasefire. Iran complained of breaches of the agreement following escalation in Lebanon, while Washington and Israel asserted that operations in Lebanon were not included in the ceasefire package. President Donald Trump also warned of further "action" if the terms of the agreement were not adhered to.
While the peace process has not stalled—Tehran and Washington plan to send delegations for direct negotiations in Pakistan later this week—concern over the fragility of the ceasefire has kept the dollar relatively supported and curbed interest in the precious metal. In this environment, silver tends to be sensitive to Hormuz headlines, dollar stability, and changes in global interest rate expectations.
Source: Newsmaker.id