Silver holds near $75 as Iran hopes, weak US Dollar offset flows

Finance

Silver holds near $75 as Iran hopes, weak US Dollar offset flows

Silver (XAG/USD) trades around $75.00 on Wednesday, edging slightly lower at the time of writing, as the precious metal pauses after a strong three-day recovery. The white metal remains close to recent highs, although the bullish momentum appears to be slowing as investors reassess geopolitical developments in the Middle East.

Market sentiment improved after US President Donald Trump suggested that the conflict involving Iran could end relatively soon. Earlier this week, Trump stated that the United States (US) could leave the conflict within two to three weeks, whether or not a formal agreement with Tehran is reached. These remarks fueled hopes of a quicker resolution to the tensions that had previously supported safe-haven assets.

On Wednesday, Trump said that Irans new regime president had asked for a ceasefire, although he stressed that the United States would only consider such a move once the Strait of Hormuz is “open, free, and clear”. While uncertainty persists, the prospect of negotiations and a potential de-escalation has reduced some of the defensive demand that had pushed precious metals higher in previous days.

The easing of geopolitical fears has also contributed to a decline in the US Dollar (USD). A weaker Greenback tends to support commodities priced in USD, including Silver, as it makes them more affordable for holders of other currencies. This dynamic has helped limit the downside for XAG/USD despite the slight cooling in safe-haven demand.

At the same time, the broader macroeconomic environment remains supportive for precious metals. Expectations that lower Oil prices could reduce inflation pressures have revived discussions about a potentially less restrictive monetary outlook. Lower interest rate expectations generally benefit non-yielding assets such as Silver, as they reduce the opportunity cost of holding them.

Looking ahead, traders will remain attentive to further geopolitical headlines and signals from central bank officials. Any confirmation of easing tensions in the Middle East could limit safe-haven flows, while continued weakness in the US Dollar may help Silver maintain support in the near term.