FX.co ★ Silver Extends Fall Despite Ceasefire Talks

Silver extended its decline toward $72 an ounce on Monday, adding to losses from the previous session as investors weighed reports of a potential ceasefire in the Middle East. According to those reports, the United States, Iran, and a group of regional mediators are in talks over a possible 45-day truce that could create a path toward ending the conflict.

At the same time, President Donald Trump issued a new ultimatum to Iran, threatening strikes on the country’s power plants and other civilian infrastructure if the Strait of Hormuz is not reopened. Tehran has rejected the demand and continues to target energy assets across the region.

Since the conflict began, silver has fallen more than 20%, as surging energy prices have intensified inflation concerns and reinforced expectations of interest rate hikes. The metal has also struggled to fulfill its traditional safe-haven function, facing additional downward pressure from forced liquidations as investors sold holdings to cover losses elsewhere in the market.