Silver prices rose 4% after President Donald Trump cancelled planned Iran strikes, easing oil-driven inflation fears and lowering rate-hike expectations across precious metals markets.

Key Highlights

  • Spot silver rose 3.3% to $65.78 per ounce as precious metals rebounded.
  • Trump’s decision to cancel Iran strikes eased fears of oil-driven inflation.
  • Silver gained as lower rate-hike expectations supported non-yielding metals.

Silver Rises as Precious Metals Reprice Geopolitical Risk

Silver prices rose sharply on Thursday as precious metals recovered after President Donald Trump cancelled planned military strikes against Iran. Spot silver climbed 4% to $65.78 per ounce, joining a broader rally across gold, platinum and palladium.

The move reflected a shift in market expectations rather than a simple safe-haven trade. In recent sessions, silver had been caught between geopolitical uncertainty, higher oil prices and rising U.S. inflation concerns. Trump’s decision reduced the immediate probability of a larger military escalation, helping ease fears that energy prices would keep inflation elevated and interest rates higher for longer.

That matters for silver because the metal sits between two markets. It behaves partly like a precious metal, responding to monetary policy and risk sentiment. It also behaves like an industrial commodity, with demand linked to manufacturing, solar power, electronics and broader economic activity.

Why Trump’s Iran Decision Supported Silver

The key market reaction came through oil and interest-rate expectations. A wider U.S.-Iran conflict could have threatened oil flows from the Gulf region, pushed crude prices higher and added pressure to inflation. Higher inflation can sometimes support hard assets, but if it forces the Federal Reserve to keep rates elevated, silver can come under pressure.

After Trump cancelled the planned strikes, traders lowered expectations for a December U.S. rate hike. That helped precious metals recover. Lower expected rates reduce the opportunity cost of holding assets such as silver, which do not provide interest income.

Silver’s gain was also supported by a weaker U.S. dollar in broader markets. Since silver is priced in dollars, a softer dollar can make the metal more affordable for buyers using other currencies.

Fed Policy Still Shapes the Silver Outlook

Despite the rally, silver remains exposed to U.S. monetary policy. Recent data showed producer prices increased more than expected in May, while consumer inflation also accelerated, helped by energy-related costs. These figures complicate the outlook for the Federal Reserve.

Investors are waiting for next week’s Fed meeting, the first under Chair Kevin Warsh. Rates are expected to remain unchanged, but the tone of the policy statement will be important. If the Fed signals that inflation remains too persistent, silver could face renewed pressure. If policymakers focus more on labour-market softness or growth risk, the metal may retain support.

Weekly jobless claims also rose to 229,000 for the week ended June 6, above expectations of 219,000. Softer labour data may strengthen the case for a less aggressive Fed stance, which would generally be supportive for precious metals.

Industrial Demand Adds Another Layer

Silver’s outlook is not only about rates and geopolitics. Industrial demand remains a major part of the market. Silver is used in solar panels, electrical systems, semiconductors and medical applications. This gives it a different profile from gold.

If global growth weakens, industrial demand concerns can limit silver’s upside. But if manufacturing activity stabilises and clean-energy demand remains firm, silver can benefit from both monetary and industrial support.

This dual role makes silver more volatile than gold. It can rise quickly when investors seek precious-metal exposure, but it can also fall sharply when industrial demand expectations weaken.

Broader Precious Metals Rally

Silver’s gain was part of a wider move across precious metals. Gold rose strongly after recovering from a multi-month low. Platinum and palladium also advanced as traders reassessed geopolitical risk, inflation expectations and rate probabilities.

The breadth of the move suggests that investors were not simply buying one metal. They were repricing the entire precious metals complex after Trump’s Iran decision reduced the immediate risk of an oil-led inflation shock.

Conclusion

Silver’s 3.3% rise shows how sensitive the metal remains to the intersection of geopolitics, inflation and Federal Reserve policy. Trump’s decision to cancel Iran strikes eased oil-driven inflation fears and lowered rate-hike expectations, giving silver room to rebound. The next test will be whether Fed guidance confirms a softer rate outlook or brings inflation risk back into focus.