Silver prices surged sharply, jumping nearly 6% and inching closer to the key $80-per-ounce mark, as growing optimism over a potential breakthrough in U.S.-Iran talks sparked a broad-based rally in precious metals.
The move comes amid easing geopolitical tensions, which have pressured oil and the dollar, prompting investors to rotate into bullion even as safe-haven demand remains intact.
Market sentiment has turned increasingly constructive after reports suggested Washington and Tehran are nearing an agreement to end hostilities.
ALSO READ: Oil Cools On Peace Hopes: Brent Slides 7% As US, Iran 'Close In' On Ending War
U.S. President Donald Trump said on Tuesday he would briefly pause 'Project Freedom' to help escort ships through the Strait of Hormuz, citing progress toward a comprehensive agreement with Iran.
Also, Defense Secretary Hegseth affirmed that the ceasefire that was established a month ago continued to be in place, while State Rubio said that the offensive operations have ended as Washington pivots toward safeguarding shipping routes in the Strait of Hormuz, as per Trading Economics.
Notably, the naval blockade on ships traveling to and from Hormuz also stays in place. Iran will only accept "a fair and comprehensive agreement" in its negotiations with the U.S. on ending the war in the Middle East, its foreign minister said on Wednesday.
ALSO READ: US, Iran Close On Finalising 'One Page Memo' To End War; Nuclear Discussions To Be Deferred: Report
Spot gold surged by nearly 2% to trade near $4,630 per ounce, while spot silver climbed by nearly 6% to trade around $80 per ounce. On the other hand, crude oil prices plunged by 2% with US WTI crude and Brent crude holding around $100 per barrel and $108 per barrel. US dollar also fell towards 98, halting its three consecutive days rally, which further supports safe haven assets like gold.
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