Silver Price Forecast: XAG/USD holds losses near $80.50 due to renewed inflation concerns
- Silver stayed negative as Strait of Hormuz tensions lift oil prices, heightening inflation concerns.
- Iran says US breached ceasefire by firing on a commercial vessel, warning of imminent retaliation for “maritime aggression.”
- Iran reversed the Strait of Hormuz reopening after Trump refused to lift the blockade on Iranian ports.
Silver price (XAG/USD) pares its daily losses, trading around $80.50 per troy ounce during the Asian hours on Monday. Non-interest-bearing Silver remains in negative territory as renewed hostilities in the Strait of Hormuz pushed oil prices sharply higher, amplifying inflation concerns and increasing the chances of further central bank rate hikes.
Iran’s military stated that the United States (US) breached the ceasefire by firing on one of Iran’s commercial vessels, according to Bloomberg. Tehran warned it would soon retaliate against what it described as maritime aggression by US forces. Meanwhile, US President Donald Trump confirmed that the US Navy fired upon and seized an Iranian-flagged cargo ship in the Gulf of Oman after it failed to comply with orders to stop while leaving Hormuz.
Iranian state media, the Islamic Republic News Agency (IRNA), reported that Tehran has declined to resume negotiations with US officials, citing “unrealistic expectations,” among other issues.
Iranian authorities had briefly indicated on Friday that the Strait would reopen, but reversed the move on Saturday after President Trump refused to lift the blockade on Iranian ports. Trump also stated on Truth Social that US officials will head to Islamabad for talks with Iran on Monday. At the same time, he criticized Tehran’s decision to re-close the Strait and renewed threats to target Iranian infrastructure, including power plants and bridges.