Silver slid back toward 93.50 dollars on Monday, erasing part of its earlier advance as an initial safe-haven surge ran into headwinds from a strengthening US dollar. The metal had jumped nearly 3% to 96.40 dollars after coordinated US and Israeli strikes killed Iran’s Supreme Leader, but the rally faded as investors reassessed the risk of a broader global industrial slowdown.
With the Strait of Hormuz effectively shut, about 20% of the world’s energy supply is at risk, a shock that could undermine industrial activity and, in turn, curb demand for silver in electronics and solar applications. While gold is still trading near record highs, silver is under pressure from a broad “de-risking” move in which traders liquidate winning positions to cover losses in plunging equity markets.
Recent US data pointing to higher production costs has led investors to scale back expectations for interest rate cuts, lending further support to the dollar and adding another drag on silver. Although the longer-term trend for silver remains constructive, its near-term outlook is uncertain, caught between its appeal as a safe haven and its vulnerability to a slowing global economy.