Silver was under some pressure on Tuesday, but remained within a range as markets were still focused on the upcoming second round of US-Iran negotiations.
With the current ceasefire nearing expiration, uncertainty around a potential extension is keeping investors cautious.
While diplomatic efforts continue, the risk of escalation remains present.
Against this backdrop, lingering inflation concerns and expectations that central banks could maintain a cautious stance on monetary policy are tempering the appeal of non-yielding assets. However, the upcoming hearing of Kevin Warsh could influence sentiment. Any shift toward more dovish monetary policy expectations could compress Treasury yields and provide a supportive backdrop for silver.
Additionally, expectations of a sustained deficit in the market for a sixth consecutive year reinforce the metal’s bullish fundamentals, even as short-term price action remains constrained by macro and geopolitical uncertainty. Silver could experience increased demand, while supply could shrink this year, providing support over the medium to long term.
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