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Silver holds near $55 as oil rally stalls after US-Iran tensions

Brent crude jumped more than 17% last week, but as it slipped back below $90, silver rebounded, signaling easing bearish conviction.

Reported · Written up by our desk · Major Pairs

Silver traded just below the key $55 level on Friday before regaining support at the start of the new week, even as Brent crude gapped above $90 amid renewed US-Iran conflict, according to Action Forex.

The outlet said the lack of follow through lower in silver stood out, given that higher oil had boosted expectations for renewed inflation pressure and, in turn, lifted Treasury yields and the US dollar while weighing on precious metals.

Action Forex noted that Brent’s move had already been largely priced in, with the benchmark surging more than 17% last week, its biggest weekly gain since April. It also pointed to weekend headlines as reinforcing that outlook rather than adding a new shock, while Brent struggled to extend above $90 during Asian trading and helped stabilize broader inflation expectations.

Still, the report said markets remain highly uncertain as Iranian Foreign Ministry spokesman Esmail Baghaei said negotiations with the US could continue if they serve Iran’s national interests, keeping the prospect of a temporary disruption on the table. It warned that if talks fail and Brent pushes toward $100, markets would likely rebuild inflation expectations, lifting yields and the dollar and exposing silver to renewed selling pressure.

Latest closeSilver $55.72 ▼2.4%|WTI crude $79.00 ▼0.8%|Brent $84.94 ▼0.0%

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