Silver Price Forecast: Trump Signals Rapid Progress in US-Iran Negotiations, Bulls Target $90

In the past two days, US-Iran negotiations have seen significant volatility. On Monday (June 1), Iran announced the suspension of indirect talks with the United States, citing Israel's military operations in Lebanon for undermining the ceasefire environment. Iran also accused the US of shifting its stance and demanded that Israel halt such operations before communications could resume.

Consequently, Brent and WTI crude oil prices surged. By Monday's close, WTI ( USOIL) rose 5.37% to $92.46, while Brent crude climbed 3.66% to $95.24.

For silver, the impact of rising oil prices is heightened inflation expectations. If shipping risks in the Strait of Hormuz escalate, energy prices could continue to climb, thereby driving up US inflation expectations. Meanwhile, rising inflation expectations have triggered market concerns that the Federal Reserve will maintain high interest rates for longer, potentially strengthening Treasury yields and the US dollar, which in turn pressures non-interest-bearing asset prices.

The situation shifted again on Tuesday. Trump stated that US-Iran negotiations have resumed and are progressing rapidly. This prompted markets to reassess whether the previous day's surge in oil prices was excessive; as a result, the crude oil market remained weak and trended lower today, while gold and silver maintained intraday gains.

If negotiations continue to advance, markets may lower expectations for crude oil supply disruptions. A pullback in oil prices would ease inflationary pressures and potentially drive Treasury yields lower, thereby supporting continued strength in silver prices.

However, the resumption of talks does not signify that the situation has stabilized. The underlying reasons for Iran's previous suspension have not been fully resolved. Issues involving the Strait of Hormuz, sanctions arrangements, the nuclear program, and Israel's actions in Lebanon could still cause negotiations to break down again.

Silver price weekly chart, source: TradingView

Looking at the weekly chart, silver prices have entered a broad high-level consolidation phase following a rapid surge to an all-time high of $121.64. Current prices are consolidating around the short-term range of 76-77, with the primary overhead resistance at 82-85 and further resistance at 90-95. Key support lies at 70-72; a break below this level could lead to a test of 64-66, with deeper support targets at 55-60.

Silver price daily chart, source: TradingView

From the daily chart, silver has consistently traded above the 144-day moving average, suggesting that the medium-to-long-term bullish trend remains intact. Additionally, as the lows of the candlesticks gradually ascend, silver prices are likely to break out of the recent consolidation range of 73.60-78.00 and potentially resume their upward trajectory.

Currently, short-term focus should be on whether silver can breach the May 26 high of $78.38. If the price manages to stabilize above this level, it will clear the path for further upside toward the next resistance target at $90.00.

This content was translated using AI and reviewed for clarity. It is for informational purposes only.