Silver jumps 2% to near $60 as US-Iran diplomacy hopes rise

Silver rose 2.1% to $59.80 an ounce, the highest in three weeks, as renewed US-Iran diplomatic efforts reduced geopolitical risk premiums.

"Talks have made progress and are continuing," Iran's Foreign Ministry spokesperson Esmail Baghaei said Sunday after several rounds of technical discussions with Oman about the Strait of Hormuz.

The US military has paused airstrikes on Iran after 13 consecutive nights of bombing, according to the Associated Press. The lull follows an interim ceasefire deal signed in June that had temporarily eased tensions before a battle for control over the strait erupted. Oil prices have also retreated as diplomacy advances, with Brent crude falling from multi-month highs.

Silver at $59.80 remains 12% below its 2026 high of $67.90 set in May. The metal has benefited from both safe-haven demand during the conflict and industrial demand tied to solar manufacturing and electronics. The next catalyst is Israeli Prime Minister Benjamin Netanyahu's planned visit with Trump in Washington next week, which could shift the trajectory of negotiations.

The rally pushed silver above its 50-day moving average of $57.40, a technical level traders watch. COMEX silver inventories stood at 298 million ounces as of last week, according to exchange data, down 4% from the start of the year.

Silver's dual role as both a monetary and industrial metal has amplified its sensitivity to the Iran situation. The Strait of Hormuz, through which 20% of the world's oil normally flows, remains partially restricted, keeping energy costs elevated and supporting precious metals as an inflation hedge. A full diplomatic resolution could remove that support, while a breakdown in talks could drive silver toward $65.

This article is for informational purposes only and does not constitute investment advice.