Silver Price Forecast: XAG/USD holds gains above $75.50 amid Iran deal uncertainty

Silver price (XAG/USD) holds gains after experiencing volatility, trading around $75.60 per troy ounce during the Asian hours on Monday. The non-yielding white metal traded sideways as market participants closely assessed the highly fluid developments surrounding United States (US)-Iran peace negotiations.

According to a BBC report, US President Donald Trump is seeking to alter and reinforce several key terms of a proposal aimed at ending the conflict. These requested changes specifically target regulations surrounding the strategic Strait of Hormuz and the mandatory removal of highly enriched uranium from Iran.

Iranian officials are projecting a mix of caution and firm resolve. Iranian Foreign Minister Abbas Araghchi confirmed that dialogue and message exchanges with Washington remain ongoing, though he dismissed current media commentary as mere speculation, emphasizing that the negotiations cannot be properly evaluated until a definitive outcome is reached. Meanwhile, Parliament Speaker and top negotiator Mohammad Bagher Ghalibaf established a strict boundary for the talks, asserting that Tehran will reject any agreement unless it explicitly ensures the rights of the Iranian people are secured.

This geopolitical uncertainty continues to weigh on the precious metal. Israel has ordered its troops to advance further into Lebanon, marking a tactical escalation in its conflict with the Iran-backed militant group Hezbollah. The military push comes despite a ceasefire agreement announced more than six weeks ago, severely threatening to unravel earlier diplomatic progress.

Silver has faced headwinds since late February, as the Middle East conflict drove energy prices sharply higher, fueling concerns about inflationary pressures and the prospect of higher-for-longer interest rates. With geopolitics hanging in the balance, investors are now awaiting the latest US monthly jobs report due later this week, which could offer fresh insight into labor market strength and the future path of Federal Reserve (Fed) policy.