Key Highlights

  • Year-over-year gains narrowed to 59.4%, down from a peak of 173.3% in May.
  • Rising oil prices and a stronger dollar pressured silver, which dropped more than 3.5%.
  • Silver futures tumbled on Monday as escalating U.S.-Iran tensions and Federal Reserve policy concerns weighed on precious metals.

Silver futures tumbled on Monday as escalating U.S.-Iran tensions and Federal Reserve policy concerns weighed on precious metals. The decline dragged mining stocks and exchange-traded funds lower, while rising oil prices and a stronger dollar amplified the selloff. Investors shifted toward safe-haven assets like gold, leaving silver vulnerable to geopolitical and macroeconomic pressures.

By 8:33 a.m. ET, prices had fallen further to $58.60, reflecting heightened risk aversion. The decline followed U.S.

Airstrikes on Iran, which triggered conflicting claims over the Strait of Hormuz’s status, a critical chokepoint for global oil shipments.

Market Impact

The silver market extended its weekly losses to 4.6%, while monthly declines reached 10.9%. Year-over-year gains stood at 59.4%, a sharp retreat from the 173.3% surge recorded on May 14. Rising oil prices and a stronger dollar pushed silver down more than 3.5%, as investors favored assets less sensitive to inflation and geopolitical risks.

Mining stocks and silver-backed ETFs faced selling pressure, with some funds taxed as collectibles rather than standard investments.

What's Next

Investors will monitor Fed signals on interest rates, as prolonged tightening could further dampen demand for non-yielding assets like silver. Physical silver, including bullion bars and government-minted coins, may see renewed interest if tensions persist, though ETFs offer a more liquid alternative for exposure.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.