Why Is AG Stock Jumping Over 5% In Overnight Trading?

Precious metal prices, including gold and silver, were higher in the overnight session on Sunday as a peace deal between the U.S. and Iran eased concerns around inflation and higher interest rates.

• Spot silver prices were up nearly 4% at the time of writing, trading above the $70 mark.
• Spot gold prices were also up more than 2.5% at the time of writing, trading at around $4,325.78. 
• First Majestic Silver is a publicly traded Canadian mining company that focuses on the production, development, and exploration of silver and gold in Mexico and the U.S.

Shares of First Majestic Silver Corp. (AG) rose more than 5% in the overnight session headed into Monday after precious metal prices gained following the announcement of a U.S.-Iran peace agreement.

Spot silver prices were up nearly 4% at the time of writing, trading above the $70 mark. Silver Futures (SL_F) were about 3.9% higher. Spot gold prices were also up more than 2.5% at the time of writing, trading at around $4,325.78.

Meanwhile, retail chatter around First Majestic Silver was up about 40% in the last 24 hours, according to Stocktwits data.

US-Iran Deal Boosts Silver Prices

The U.S. and Iran agreed to an interim peace deal on Sunday, ending the Middle East conflict and reopening the critical Strait of Hormuz.

U.S. President Donald Trump said in a post on Truth Social that the deal with Iran is “now complete,” adding that the Strait would be open and that “the immediate removal of the United States Naval blockade” would allow ships to pass through the critical waterways.

Earlier in the day, Pakistani Prime Minister Shehbaz Sharif confirmed that the official signing ceremony for the peace deal between Washington and Tehran will take place on June 19 in Switzerland.

The announcement eased some concerns around inflation and higher interest rates. Meanwhile, falling Treasury yields and a weaker U.S. dollar boosted demand for precious metals, pushing silver and gold prices higher.

First Majestic Silver is a publicly traded Canadian mining company that focuses on the production, development, and exploration of silver and gold in Mexico and the United States.

AG Stock: Retail Stance

On Stocktwits, retail sentiment around AG improved from ‘neutral’ to ‘bullish’ territory over 24 hours amid ‘high’ message volumes.

One user bullish on the company said, “Time to see silver back to over $100 within a month... And with the amount of oil being produced by us and OPEC ending with oil flowing everywhere gas prices and energy prices will collapse making inflation reverse since everything in this world requires energy to make or operate... Watch the talk for interest rate cuts again.”

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Another bullish user said that this could be the stock’s breakout level.

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A third user said, “Anyone think we see a gap fill on Silver before we make our way higher, nothing would surprise me this week!” adding that they were “cautiously optimistic.”

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AG shares have more than doubled in value in the last year. Meanwhile, the iShares Silver Trust (SLV) has gained more than 85% and the SPDR Gold Trust (GLD) has jumped nearly 24% in the same time.

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