Silver prices (XAG/USD) moved slightly higher but remained sideways on Friday (March 27th), amid a combination of defensive demand and macroeconomic pressures. XAG/USD was last trading around $68.53 per ounce, up from the previous close of $67.97.

Market focus returned to geopolitics after hopes for de-escalation in the Middle East faded. Reports that Iran had not requested a pause in US attacks on energy infrastructure added uncertainty to the direction of diplomacy, maintaining volatility across assets. Tensions around the Strait of Hormuz kept energy prices high, bolstering inflation expectations and altering market assessments of the monetary policy path in major economies.

On the macro front, expectations of "higher for longer" interest rates increased the opportunity cost for silver as a non-yielding asset, while a stronger US dollar limited upside room by making silver more expensive for non-USD buyers. With these competing signals, silver's near-term direction will be determined by the balance between safe-haven demand and pressures from yields and the dollar.