Silver and other precious metals are experiencing a rebound, driven by declining inflation expectations and optimism surrounding potential peace between Iran and the U.S., particularly regarding the Strait of Hormuz. This shift comes after a period of pressure from rising global bond yields, which had previously bolstered demand for safe-haven assets. As bond yields fall, precious metals are regaining attractiveness, although concerns about high volatility and historical valuations may temper further gains.
Currently, silver is testing resistance around $82 per ounce, while gold has broken above key volume profile levels, indicating potential for continued upward movement. The technical indicators suggest that gold could advance towards the $5,140 per ounce mark if the positive momentum persists. However, the trajectory of prices will likely hinge on developments in Middle East peace talks and the positioning of the U.S. dollar, which traditionally exhibits an inverse correlation with precious metals.
Market professionals should monitor these geopolitical dynamics closely, as they could significantly influence precious metal valuations and trading strategies in the near term.
Source: xtb.com