XAG/USD rises to near $78.00 due to potential US-Iran agreement

• Silver rises as US-Iran deal hopes eased inflation fears and tempered hawkish central bank expectations.
• Fed’s Goolsbee warned that inflation has accelerated since the conflict, moving further from the Fed’s 2% target.
• The US proposed to Iran a memorandum of understanding to gradually reopen the Strait of Hormuz.

Silver price (XAG/USD) rises for the second successive day, trading around $77.90 per troy ounce during the Asian hours on Thursday. Non-yielding Silver prices found support from optimism surrounding a potential US-Iran agreement, which triggered a sharp drop in oil prices, easing inflation concerns, and reducing expectations for prolonged hawkish central bank policies.

However, Chicago Fed President Austan Goolsbee cautioned that inflation has not continued to moderate toward the Federal Reserve’s 2% target and has instead accelerated since the conflict began.

The BBC reported on Wednesday that Iran said a US proposal to end the conflict is “still being considered,” despite reports suggesting both sides may be nearing an agreement. According to reports, the US submitted a one-page memorandum of understanding to Iran that would gradually reopen the Strait of Hormuz and ease the American blockade on Iranian ports. Discussions regarding Iran’s nuclear program would follow later, though no final agreement has been reached.

Meanwhile, CNBC reported that US President Donald Trump warned Iran would face bombing “at a much higher level” if it refuses to agree to a peace deal. In a Truth Social post, Trump said the US military campaign, dubbed Operation Epic Fury, “will be at an end” if Iran “agrees to give what has been agreed to.”