Silver rallies as U.S.-Iran peace deal weakens dollar

Silver Jumps 4% as US-Iran Peace Framework Weakens Dollar

Silver prices surged about 4% on Monday as a preliminary peace framework between the United States and Iran sent the dollar lower and lifted demand for precious metals across global markets.

Peace Deal Reshapes Market Landscape

The rally followed President Donald Trump’s announcement on Sunday evening that the U.S. and Iran had reached an agreement to end their war and reopen the Strait of Hormuz, with a formal signing set for Friday in Switzerland. Iran’s deputy foreign minister confirmed the deal, which includes a 60-day framework to address Tehran’s nuclear program and sanctions relief on Iranian oil exports.atlanticcouncil

Silver futures opened at $68.90 per ounce on Monday, climbing to around $70.75 in early trading, according to Yahoo Finance. Bloomberg reported that silver gained as much as 4.1%, while spot gold rose more than 2.7%. The U.S. Dollar Index fell to around 99.55, near a 10-day low, as improved risk sentiment reduced demand for the greenback.thestar

Dollar Weakness Fuels Precious Metals

The weakening dollar made dollar-denominated commodities more attractive to international buyers. According to CNBC, the dollar hovered near its lowest level since June 5 after the peace deal was announced. The DXY opened the week with a bearish gap, down roughly 0.25% in early trading.tmgm

Analysts noted the convergence of geopolitical de-escalation with expectations around the Federal Reserve’s upcoming policy decision later this week. With the Fed widely expected to hold rates steady, the outlook for non-yielding assets like silver improved. The peace agreement also pushed oil prices lower, easing inflation concerns that had supported expectations of further rate increases.cnbc

Broader Market Context

The U.S.-Iran conflict, which began in late February, had weighed on precious metals prices for months as rising energy costs fueled inflation fears and rate-hike expectations. Monday’s rally marked a reversal of that dynamic, with markets pricing in reduced geopolitical risk and a potentially more accommodative monetary policy path.khaleejtimes

The memorandum of understanding commits both sides to refrain from attacking each other and establishes a negotiating framework on Iran’s nuclear program, including its enriched uranium stockpile. Pakistan’s Prime Minister Shehbaz Sharif, who mediated the talks, said on X that “peace has never been as close as it is now”.apnews