Silver Takes Breath as US-Iran Deal Timeline Passes Without Announcement

Silver prices have trimmed some of their recent gains after the anticipated timeline for a US-Iran deal passed without an announcement. Despite this, hopes for a deal are likely to keep the market supported for now unless there's another escalation.

The US Treasury Secretary confirmed that an Iran deal could have been reached as early as yesterday and would have included the reopening of the Strait of Hormuz. The next test will come next week with the release of the US CPI report, which is critical for the September FOMC decision and the Jackson Hole Symposium.

A hot report from the US CPI would likely trigger a selloff in silver, with traders increasing rate hike bets, while a soft report would reduce further the risk of Fed tightening and give silver another boost. On the technical side, silver has pulled back to the major downward trendline on the daily chart, where it meets the confluence of the key swing high at 63.20.