Silver Soars, Iran Tensions Boost Safe Haven Demand
Silver prices surged more than 6% to around US$85.50 per ounce on Monday (May 11), reversing early session weakness and reaching their highest level in nearly two months. This sharp rise occurred as investors monitored developments in negotiations between the United States and Iran, which have reached a stalemate.
The surge came after President Donald Trump rejected Iran's peace proposal as "completely unacceptable," raising the risk of a new escalation in the conflict. Weekend attacks in the Middle East also shook the fragile ceasefire reached in April.
With diplomacy stalled, the Strait of Hormuz remains closed, keeping oil prices high and heightening concerns about global inflation. This situation has increased demand for safe haven assets such as precious metals.
On the monetary policy front, expectations of a Federal Reserve interest rate cut are fading. Market projections are now divided between the possibility of limited easing and a scenario of no rate cuts next year.
Market participants are also awaiting the release of US consumer inflation data and Trump's visit to China, where he is scheduled to meet with President Xi Jinping to discuss Iran, Taiwan, artificial intelligence, and nuclear weapons.
The combination of geopolitical uncertainty and unclear monetary policy direction means that volatility in the precious metals market is expected to remain high in the near term. (Arl)
Source: Newsmaker.id
