01.05.202600:09:32UTC+00Silver Gains as Dollar Weakens

Silver rose above $74 an ounce on Friday, extending the prior session’s gains, buoyed by a sharp depreciation in the US dollar following reports of Japanese intervention in currency markets. A weaker dollar typically supports dollar-denominated precious metals by making them cheaper for holders of other currencies.

Even so, silver is still poised for a second consecutive weekly decline, as hopes for a US-Iran peace deal fade and expectations grow that the Strait of Hormuz will remain closed for the foreseeable future. US President Trump stated that Washington would maintain its naval blockade of Iranian ports, while Tehran vowed to continue its nuclear program and indicated it would retain control over the strategic waterway.

The resulting disruption to energy supplies has intensified inflation concerns, strengthening market expectations that major central banks may keep interest rates elevated for an extended period or even move to tighten policy further.