Silver Prices Rise to Six-Week High on Ceasefire, Dollar Weakness

Spot silver prices rose to $80.80 on Friday, marking their highest close since March 13. The precious metal gained about 4% for the week, driven by a combination of factors.

A 10-day ceasefire between Israel and Lebanon eased market concerns. Oil prices fell 9% after Iran confirmed the Strait of Hormuz remained open. Lower oil costs can reduce inflation pressure, supporting expectations for future interest rate cuts. Silver also benefits from industrial demand in sectors like solar panels, electronics, and electric vehicles.

The U.S. Dollar Index reached its lowest point in about six weeks. A weaker dollar makes silver more affordable for international buyers. This currency movement was a key factor in silver’s performance throughout the week.

Traders noted the aligned movements of the dollar, oil, and the ceasefire created a favorable environment for silver. This setup is considered delicate. A recovery in the U.S. dollar or a rebound in Brent crude prices could quickly reverse silver’s gains.