Silver prices fluctuated in Asian and early US trading, caught between competing safe-haven and monetary policy narratives. After a sharp 6% surge on Thursday, the white metal retreated to near $67 an ounce before steadying later as the US dollar weakened.
The initial drop came as fresh military friction near the Strait of Hormuz complicated hopes for a US-Iran peace deal. Reports of US forces intercepting Iranian attack drones contrasted with the constructive tone from President Trump’s decision to pause strikes on Iranian energy infrastructure, leaving a fragile diplomatic gap.
But later, silver found a floor as the dollar index slid to a one-week low following softer-than-expected US economic data. This revived expectations that the Federal Reserve might cut rates later this year, reducing the opportunity cost of holding non-yielding assets like silver and gold.
The metal’s dual nature—acting as both a monetary haven and an industrial commodity—keeps it highly sensitive to macroeconomic shifts. Rising producer prices (up 6.5% year-on-year in May) and a hawkish ECB rate hike added to rate pressure, capping further gains. Analysts see key resistance at $24.50/oz and support at $23.80/oz, with the near-term outlook hinging on the Fed’s next signals and geopolitical developments.
For crypto traders, silver’s gyrations are a reminder of how macro forces—dollar strength, inflation data, and central bank actions—ripple across all risk assets. As risk appetite adjusts, both precious metals and digital assets often move in sympathy.
