Silver rose to around $59 an ounce on Thursday, supported by a weaker US dollar, although gains remained limited as investors monitored escalating tensions in the Middle East and their potential impact on inflation and interest rates.
The US military said it launched fresh strikes on Iran on Wednesday, prompting retaliatory attacks on Kuwait and Bahrain and raising regional tensions.
However, US President Donald Trump said Iran had reached out seeking a deal, easing fears of a broader conflict.
Meanwhile, minutes from the Federal Reserve's latest meeting revealed growing concern over inflation, with several policymakers arguing that a rate hike could be warranted before rates were ultimately left unchanged last month.
Markets are now pricing in a 63% chance of a September rate hike.
Investors are now awaiting next week's US inflation report and Federal Reserve Chair Kevin Warsh's congressional testimony for further clues on the policy outlook.