Silver prices (XAG/USD) surged on Tuesday (March 31st) and traded around $73.70, up 5.14% intraday.

The precious metal benefited from a weaker US dollar (USD) and renewed market optimism following reports indicating that US President Donald Trump is willing to end the military campaign against Iran even though the Strait of Hormuz remains largely closed.

According to a Wall Street Journal report, Donald Trump told aides that he is open to pursuing a diplomatic resolution with Iran. The report added that US government officials believe that forcing the reopening of the Strait of Hormuz would require extending the military operation well beyond initial estimates of four to six weeks.

In theory, easing geopolitical tensions would

In theory, easing geopolitical tensions would typically reduce demand for safe-haven assets like silver.

However, the white metal actually performed better as the market hoped that a ceasefire in the Middle East would lower oil prices, helping to ease mancanegara inflation expectations.