Silver Surges on Geopolitical Tensions, Inflation Fears

(MENAFN) Silver prices climbed sharply on Monday, rising about 7% to nearly $86 per ounce, as investors reacted to stalled diplomatic efforts between the United States and Iran alongside growing geopolitical uncertainty in the Middle East.

The metal briefly reached around $85.5 per ounce, rebounding from earlier declines and touching its highest level in almost two months. The rally was driven largely by safe-haven demand after US President Donald Trump dismissed Iran’s latest peace proposal as “totally unacceptable,” raising fears of renewed regional escalation.

Gold prices also edged higher, with spot gold increasing 0.3% to $4,725 per ounce by mid-afternoon trading (1615 GMT), reflecting broader caution in global markets.

Recent developments in the Middle East, including weekend strikes and ongoing instability, have further undermined an already fragile ceasefire established earlier in April. At the same time, diplomatic negotiations remain at a standstill.

Market pressure has also been amplified by continued disruption in the Strait of Hormuz, which has contributed to higher oil prices and reinforced inflation concerns across major economies.

Expectations for monetary easing in the United States have weakened, with forecasts for Federal Reserve rate cuts this year now uncertain and some market participants even anticipating no cuts in 2026.

Investors are closely watching upcoming US inflation data scheduled for release on Tuesday, which could influence the Federal Reserve’s policy direction.

Attention is also turning to upcoming diplomatic engagement involving Trump’s planned visit to China, where he is expected to meet Chinese President Xi Jinping for discussions covering a range of global issues, including Iran, Taiwan, artificial intelligence, and nuclear security.

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