Silver traded at $67 per ounce on Friday, on track for a fifth consecutive weekly decline as investors weighed optimism over a possible US-Iran peace deal against expectations of higher global interest rates.

Key Highlights

  • Silver traded at $67 per ounce, heading for its fifth consecutive weekly loss.
  • President Trump suggested a US-Iran deal could be reached as early as this weekend.
  • The European Central Bank raised rates on Thursday for the first time since 2023.
  • US producer prices climbed 6.5% year-over-year in May, fuelling Federal Reserve rate hike bets.

Silver prices held near $67 per ounce on Friday, extending a multi-week losing streak as the metal struggled to find support amid conflicting macro signals. The precious metal is now on pace for its fifth straight weekly decline, reflecting sustained pressure from rising interest rate expectations.

US President Donald Trump indicated that a peace agreement with Iran could be finalised as early as this weekend, a development that has weighed on broader commodity prices tied to geopolitical risk premiums. However, Tehran has not confirmed that a final decision has been reached, leaving the situation fluid heading into the weekend.

Since the onset of the Iran conflict, silver has faced consistent headwinds as surging energy costs raised concerns about broader inflationary pressure. These concerns have reinforced market expectations that central banks will need to maintain elevated interest rates for longer to contain price growth.

The European Central Bank's decision on Thursday to raise interest rates for the first time since 2023, paired with upward revisions to its 2026 and 2027 inflation forecasts, added further weight to the view that monetary tightening is far from over globally.

In the United States, producer prices rose 6.5% year-over-year in May, a figure that highlights the inflationary spillover from the Middle East energy disruption. The data has strengthened expectations that the Federal Reserve could move forward with a rate hike later this year, adding another layer of pressure on non-yielding metals like silver.

For silver price watchers, the combination of a fading geopolitical risk premium and a firming higher-for-longer rate narrative has created a difficult environment, with the metal struggling to attract fresh buying interest even as industrial demand themes remain in focus.