Silver traded steady around $75 per ounce on the first trading day of April, maintaining a surge of more than 7% from the previous session and reaching a two-week high. This price increase was driven by hopes that easing tensions in the Middle East could help lower oil prices and alleviate concerns about the possibility of further central bank interest rate hikes.

United States President Donald Trump stated that the US has achieved most of its military objectives and will let other countries handle the Strait of Hormuz issue. This statement coincided with reports from Iranian state media quoting President Masoud Pezeshkian as stating that the Islamic Republic of Iran is ready to end the war if certain conditions are met. This sent a positive signal to the market, which hopes for a reduction in geopolitical tensions.

Despite the temporary improvement, silver remains under pressure after dropping more than 20% in March, its first sharp decline since September 2011. Silver prices are currently trading nearly 40% lower than their January high, reflecting the impact of energy market disruptions and rising inflation concerns.

The decline in silver prices reflects

The decline in silver prices reflects increasing internasional economic uncertainty, which is pushing investors and central banks to adopt a more hawkish stance. This decision includes lowering expectations for an interest rate cut by the Federal Reserve in 2026, which had previously predicted two cuts before war.

Looking ahead, although silver managed to maintain its price gains in early April, the outlook for this metal remains uncertain. If Middle East tensions truly ease and oil prices fall, silver could receive further support. However, the risk of high inflation uncertainty and tighter monetary policy from central banks will limit silver's upside potential in the short term. The silver market is likely to remain volatile, with prices potentially falling again if internasional economic pressures intensify. (asd)