Silver traded near $75.60 an ounce in Asian hours on Monday as investors weighed Middle East tensions, US-Iran diplomacy and the outlook for Federal Reserve interest rates ahead of key labour-market data later this week.
The metal was little changed after recent volatility, with traders reluctant to take large positions while geopolitical risks remain fluid.
Precious metals have been whipsawed by competing forces: demand for havens has risen during periods of conflict, while a stronger dollar and higher energy prices have revived concerns that inflation may remain sticky.
That has left silver in a narrower range, even as oil markets remain sensitive to any threat to regional supply routes.
The Strait of Hormuz remains central to the market debate because any disruption there could quickly feed into energy prices and inflation expectations.
Investors are watching for fresh signals from Washington and Tehran after reports of possible changes to a US-backed proposal involving Iran.
The reported changes include tighter terms around the Strait of Hormuz and the handling of highly enriched uranium.
Iranian officials have responded cautiously. Foreign Minister Abbas Araghchi said talks with Washington were continuing but warned against judging the outcome based on media reports.
Parliament Speaker Mohammad Bagher Ghalibaf has also stressed that Tehran would reject any agreement that did not protect what it views as the rights of the Iranian people.
For silver traders, the negotiations matter because they could influence both energy markets and broader risk appetite.
A credible diplomatic breakthrough may reduce geopolitical premiums in commodities.
A breakdown in talks could lift oil prices, strengthen inflation concerns and complicate the Fed’s path on rates.
The market is also monitoring renewed military pressure around Lebanon, where Israel’s advance against Hezbollah has raised concern that the conflict could widen further.
While silver is not as widely held as gold as a haven asset, it can still react to geopolitical shocks, especially when those shocks affect inflation expectations, the dollar and bond yields.
That makes the metal vulnerable to cross-currents: haven demand can support prices, but higher rate expectations can limit gains because silver does not pay interest.
The recent rise in oil has reinforced that tension. If energy costs climb further, investors may price in a more cautious Fed, which could weigh on non-yielding metals.
At the same time, a broader escalation in the region could keep some defensive demand in place.
Beyond geopolitics, the next major catalyst is US labour-market data due later this week.
A resilient jobs report could strengthen the case for the Fed to keep policy restrictive for longer, supporting the dollar and pressuring silver.
Softer figures could have the opposite effect, easing rate concerns and giving precious metals room to recover.
Silver also carries an industrial profile that makes it more exposed to economic expectations than gold.
Demand from electronics, solar panels and other manufacturing uses means the metal can be pulled between safe-haven flows and growth-sensitive trading.
For now, the market’s message is one of caution.
Silver is holding near $75.60, but its next move will depend on whether diplomacy lowers the temperature in the Middle East, whether oil prices keep inflation concerns alive, and whether US jobs data alters the outlook for Fed policy.