Silver strengthened on Wednesday (April 22nd), attempting to recover from earlier weakness as markets reassessed Middle East geopolitical risks despite the US extending its ceasefire with Iran.

XAG/USD was last trading around US$77.9 per ounce (around +1.6% from the previous close), helped by a mildly strong dollar, but its gains remained restrained by the ongoing blockade of Iranian ports and the lack of a full-throttled Strait of Hormuz tensions. Meanwhile, oil rebounded after a correction, keeping inflation concerns alive and limiting the scope for interest rate easing—a condition that typically weighs on non-yielding assets like silver.

On the policy front, Kevin Warsh's comments on the need for a new inflation framework at the Fed reinforced the perception that the central bank will be cautious in lowering interest rates. The dollar index (DXY) hovered around 98.09, providing a cushion for silver, but its future direction remains sensitive to Hormuz headlines and interest rate expectations. (Arl)