Silver prices pared initial losses and rebounded slightly on Monday, fueled by US President Donald Trump's five-day postponement of planned strikes against Iran. Trump described the delay as the result of "productive talks" with Tehran, providing the market with a brief respite from the pressures of geopolitical escalation.

However, silver's recovery remains limited. Silver prices remain near their lowest levels since December, indicating that market sentiment has not fully recovered and volatility remains high—especially as energy and interest rate issues remain key themes.

Last week, silver plunged more than 15% after surging oil prices and inflation concerns led markets to project tighter monetary policy for a longer period. The "higher-for-longer" narrative has regained strength, even fueling speculation of a possible Fed rate hike towards the end of the year if energy inflation continues to spill over into core inflation.

Signals from internasional central banks have

Signals from internasional central banks have also not fully provided room for a recovery in precious metals. The ECB, Bank of England, and Bank of Japan have all held interest rates steady, but have signaled they are ready to tighten again if inflationary pressures persist. This presents a challenge for non-yielding precious metals, including silver.