Silver price (XAG/USD) declines after registering modest gains in the previous day, trading around $77.60 per troy ounce during the Asian hours on Thursday. Non-yielding Silver remains under pressure as traders continue to grapple with heightened uncertainty in the Middle East and the ongoing blockade of the Strait of Hormuz, which has kept energy prices elevated and inflation risks persistently high.
Iran continues to assert control over the Strait of Hormuz, restricting transit and targeting vessels. Iranian parliament speaker and chief negotiator Mohammad Bagher Ghalibaf stated that reopening the strait would be “impossible” while the United States (US) and Israel persist with what he described as “flagrant” ceasefire violations, including the US naval blockade. Meanwhile, President Donald Trump said the current truce would remain in place indefinitely as Washington awaits a renewed peace proposal from Tehran.
According to the Wall Street Journal, Iran fired on three ships in the Strait of Hormuz and escorted two of them into Iranian waters on Wednesday. Iranian media reported that the paramilitary Revolutionary Guard was moving the vessels to Iran, marking a further escalation, although White House press secretary Karoline Leavitt said the seizures did not breach the terms of the ceasefire.
The white metal has remained under sustained pressure since the conflict began, as rising energy prices have intensified inflation concerns and reduced expectations for central bank rate cuts. A recent Reuters survey of economists showed that 56 out of 103 respondents expect the Federal Reserve (Fed) to keep its policy rate within the current 3.5%–3.75% range at least through September.
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