{"id":44164,"date":"2026-04-06T17:17:24","date_gmt":"2026-04-06T17:17:24","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/44164\/"},"modified":"2026-04-06T17:17:24","modified_gmt":"2026-04-06T17:17:24","slug":"ceasefire-hopes-in-the-middle-east-lift-xag-usd-with-silver-recovering-losses-to-trade-near-73-30-73-50","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/44164\/","title":{"rendered":"Ceasefire hopes in the Middle East lift XAG\/USD, with silver recovering losses to trade near $73.30\u2013$73.50"},"content":{"rendered":"Silver (XAG\/USD) rebounded after earlier losses and traded at about $73.30 per troy ounce in European hours on Monday, after nearing $73.50. Support came as markets weighed softer expectations for tougher US Federal Reserve policy and reports of possible Middle East ceasefire talks.\n\nThe US and Iran received a proposed two-step plan, with an immediate ceasefire followed by a wider agreement. Pakistan\u2019s army chief, Asim Munir, has reportedly been in contact with US Vice President JD Vance, envoy Steve Witkoff, and Iranian Foreign Minister Abbas Araghchi.\n\nIran said it would not reopen the Strait of Hormuz under a temporary ceasefire plan, according to Reuters. Bloomberg, citing Axios, reported talks on a possible 45-day ceasefire after US President Donald Trump warned he would bring \u201chell\u201d to Tehran if no deal is reached.\n\nOil prices fell on the talk reports, which eased near-term inflation worries. Markets still see the Fed possibly delaying rate cuts and keeping the option of higher borrowing costs later this year if inflation stays elevated, with attention on upcoming Federal Open Market Committee meeting minutes.\n\nGiven the current silver price of around $73.50, we see a market pulled in two directions, creating significant potential for volatility. The prospect of a Middle East ceasefire is putting downward pressure on prices, while stubbornly high inflation figures keep the Federal Reserve in a hawkish stance. The most recent Consumer Price Index (CPI) report for March 2026 showed inflation at a persistent 3.7%, suggesting the Fed&#8217;s fight is not over.\n\nFor traders, this uncertainty makes outright directional bets risky, pointing towards strategies that profit from price swings. We should consider using options to trade the expected volatility, such as purchasing straddles or strangles that would benefit from a large price move in either direction. Implied volatility on silver options has already climbed by 8% in the last month, reflecting this market tension.\n\nThe main trigger for a sharp downturn would be a confirmed US-Iran ceasefire agreement, which seems to hinge on the reopening of the Strait of Hormuz. We saw a similar pattern in late 2025 when initial de-escalation rumors caused a swift 10% drop in silver prices before they recovered. Therefore, buying puts or establishing bear put spreads could serve as a tactical play on a successful diplomatic outcome.\n\nHowever, a fundamental floor for silver&#8217;s price is being provided by strong industrial demand, which should not be overlooked. Global solar panel installations for the first quarter of 2026 are up 18% year-over-year, and this sector is a major consumer of silver. Any geopolitically driven price dips could be viewed as opportunities to enter long positions through call options for the second half of the year.\n\nFinally, we must look at the Gold\/Silver ratio, which is currently sitting near 60, a historically low level. Looking back at the market data from 2024 and 2025, the ratio spent most of its time between 75 and 85. This suggests silver is currently very expensive relative to gold, and a pairs trade, shorting silver futures while going long gold futures, could be a prudent strategy to bet on the ratio returning to its historical average.\n<p>\r\n\r\n<p><strong>Start trading now &#8211; Click <a href=\"https:\/\/www.vtmarketsglobal.com\/en\/trade-now\/\">here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n<!-- \/wp:post-content -->","protected":false},"excerpt":{"rendered":"<p>Silver rebounds near $73.30 as softer Fed expectations and potential Middle East ceasefire talks ease inflation fears.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-44164","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/44164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=44164"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/44164\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=44164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=44164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=44164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}