Silver Surges Past USD81 for First Time in Weeks

(MENAFN) Spot silver surged past $81 per ounce on Thursday for the first time since April 17, building on momentum from the prior session as a dramatic slide in oil prices kindled hopes of easing inflationary pressure across global markets.

The precious metal climbed nearly 5% by 1205 GMT, buoyed by growing conviction that falling energy costs could alleviate the strain on consumer prices and reduce the urgency for central banks to maintain a restrictive monetary policy stance.

Gold also caught the updraft, with spot prices advancing 1.1% to $4,740 per ounce.

The catalyst behind the oil selloff was a report that Washington had transmitted a one-page memorandum of understanding to Tehran via Pakistani mediators, outlining a framework to formally end hostilities with Iran and potentially pave the way for a phased reopening of the Strait of Hormuz.

Iran confirmed it was reviewing the U.S. peace proposal and is expected to issue a formal response within days, with broader negotiations over Tehran’s nuclear program anticipated to follow in subsequent rounds.

The prospect of lower energy bills across the global economy bolstered appetite for precious metals, as receding inflation risks fed expectations of softer bond yields and a more accommodative monetary policy trajectory.

Silver, which occupies a dual role as both an investment vehicle and an industrial commodity, has remained acutely sensitive to swings in inflation expectations, interest-rate outlooks, and global risk sentiment since the outbreak of the U.S.-Iran conflict.

A note of caution, however, came from Federal Reserve Bank of Chicago President Austan Goolsbee, who cautioned that inflation has yet to resume its cooling path toward the Fed’s 2% target, and has in fact accelerated since the war began — a reminder that significant policy risks linger despite the latest relief from falling oil prices.

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