Silver prices jump 4.6% on US-Iran truce extension hopes
Silver July futures opened 4.6% higher at $76.02 per ounce on Friday after reports of a tentative 60-day truce extension between the US and Iran, boosting safe-haven demand.
Silver prices surged on Friday as July futures opened at $76.02 per ounce, up 4.6% from Thursday's opening, following reports that the US and Iran have reached a tentative agreement to extend their ceasefire by 60 days. The move higher reflects renewed safe-haven buying amid geopolitical uncertainty, though prices edged slightly lower to $75.96 in early trading. This rally comes against a backdrop of sustained central bank gold buying since 2022, which has bolstered the broader precious metals complex. Silver, often seen as gold's more volatile counterpart, benefits from the same safe-haven flows, especially when real US 10-year yields remain low, reducing the opportunity cost of holding non-yielding assets.
The precious metals market is reacting positively to the prospect of a prolonged truce, which reduces the immediate risk of conflict escalation in the Middle East. However, the tentative nature of the deal, still awaiting presidential approval, leaves room for volatility. For silver traders, the metal's dual role as both a monetary asset and an industrial commodity means that geopolitical developments can amplify price swings. The COMEX-LBMA spread has widened recently, indicating physical delivery stress, while ETF flows into GLD and IAU have been mixed, with silver ETFs seeing modest inflows. Jewelry demand remains steady, but investment demand is the primary driver during geopolitical shocks. The DXY inverse correlation is also at play: a weaker dollar supports silver, and any dollar strength from a finalized truce could cap gains. Live silver prices and charts on NowPrice show how the market is pricing in these shifting expectations.
Looking ahead, traders will monitor official confirmation of the truce extension and any further details on the terms. A finalized deal could cap further upside in safe-haven assets, while a breakdown in negotiations might trigger another leg higher. Key levels to watch include the $76 resistance and support near $72.50, the pre-announcement range. Additionally, the real US 10-year yield trajectory and COMEX inventory data will be critical for gauging silver's next move, as industrial demand from solar and electronics sectors provides a long-term floor.