Silver Prices Stuck Below $64 Amid US-Iran Talks

The silver price has been stuck below $64 per troy ounce despite diplomatic talks between the US and Iran easing oil prices. The Strait of Hormuz remains closed, but the possibility that it might reopen is causing uncertainty in the market.

The US-Iran talks on Thursday lowered Brent crude by about $2 per barrel and trimmed the probability of a 25-basis-point rate hike at the Federal Reserve's October meeting from 70% to 67.5%. However, silver barely moved, unable to recover against the highest Treasury yields since 2007.

Silver is tracking a weekly loss of approximately 3.7%, its worst week since the Federal Reserve's September 15-16 meeting produced a 25-basis-point rate hike and pushed the 10-year Treasury yield to 5.2%. The opportunity cost of holding non-yielding silver against a risk-free Treasury return is at its highest level since 2007, making it difficult for silver to recover.