Silver fell toward $58 an ounce on Monday, hovering near its lowest level since December 2025 and on track for a monthly drop of over 20%, as uncertainty surrounding US-Iran peace talks has heightened inflation concerns and strengthened expectations of Federal Reserve interest rate hikes.
The US and Iran agreed to halt Gulf hostilities and resume negotiations over the Strait of Hormuz.
US President Donald Trump disclosed that Tehran requested a meeting with an American delegation in Qatar on June 30, following Iran’s missile and drone attacks on US military sites in Kuwait and Bahrain.
Trump had previously warned Iran of severe repercussions if it failed to uphold a peace deal.
Like gold, silver, often seen as an inflation hedge, loses its appeal in high-rate environments due to its lack of yield.
Markets are now pricing in three Fed rate hikes this year, with a 60% probability of a September increase.
Investors are also awaiting critical US jobs data later this week.