Silver Surges AboveUSD81

(MENAFN) Spot silver climbed above $81 per ounce on Thursday for the first time since April 17, building on gains from the prior trading session as a steep drop in oil prices helped calm inflation concerns.

The precious metal advanced by nearly 5% as of 1205GMT, bolstered by expectations that weaker energy costs may lessen inflationary pressures and reduce the necessity for central banks to maintain restrictive monetary policies for an extended period.

At the same time, gold prices also moved higher, with spot gold increasing 1.1% to reach $4,740 per ounce.

Oil prices fell sharply following reports that the US had delivered a one-page memorandum of understanding via Pakistani intermediaries, seeking to formally conclude the conflict with Iran and potentially enable a gradual reopening of the Strait of Hormuz.

Tehran is anticipated to respond in the coming days after stating that it was reviewing a US peace proposal, while wider discussions concerning Iran’s nuclear program are expected to take place subsequently.

The possibility of declining energy costs boosted investor demand for precious metals, as reduced inflation risks could strengthen expectations for lower bond yields and a more accommodative monetary policy outlook.

Silver, which serves both as an investment vehicle and an industrial commodity, has remained highly responsive to changes in inflation expectations, interest rate forecasts, and global risk sentiment since the onset of the US-Iran conflict.

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