Silver Price Jumps 2% as US-Iran Diplomacy Hopes Boost Market

The US-Iran diplomatic efforts have led to a surge in Silver prices, with XAG/USD jumping over 2% to nearly $60. The escalation of hostilities between the two countries had previously boosted oil prices, but now the WTI Oil price is trading 5.6% lower at around $84.00.

This decline in oil prices has eased concerns about inflation and interest rates, which has reduced the appeal of non-yielding assets like Silver. However, investors will be paying close attention to the Federal Reserve's monetary policy announcement on Wednesday, where it is expected to leave interest rates unchanged.

Technical analysis suggests that XAG/USD needs a decisive daily close above its 20-day Exponential Moving Average (EMA) at $59.35 to ease immediate downside pressure and pave the way for a deeper recovery. On the other hand, the July 17 low of $54.77 is a key support level.