Precious Metals Market Update

Silver Prices Plunge 11% Amid Strengthening US Dollar

Silver prices fell 11% on Tuesday, reversing gains from the previous day, as the US dollar climbed to a one-month high. The stronger dollar made dollar-denominated commodities more expensive for holders of other currencies, limiting fresh buying in precious metals despite heightened geopolitical uncertainty.

Key Figures:

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• Silver price: Down 9% to $81.66 an ounce on Comex
• Gold price: Down 2.6% to $5,172 an ounce on Comex
• US dollar: Climbed to a one-month high, offsetting safe-haven flows triggered by the US-Israeli air war against Iran

Market Analysis

Market experts believe silver's dual role as both a precious and industrial metal is amplifying price swings. While safe-haven demand typically rises during geopolitical conflicts, industrial demand sensitivity makes silver more volatile than gold. Ross Maxwell, Global Strategy Operations Lead at VT Markets, highlighted that volatility could remain elevated in the near term.

Technical Analysis

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• Silver: Confirmed a breakout above the key $95 resistance level, paving the way for potential moves toward $100 and $105
• Gold: Resumed its upward trajectory after breaking above $5,250, with near-term targets seen at $5,450 followed by $5,600

Market Outlook

Experts believe that geopolitical headlines will remain the dominant driver of sentiment in the coming weeks. Elevated oil prices, driven by supply disruption fears, could further reinforce inflation risks — historically a supportive backdrop for precious metals. Renisha Chainani, Head – Research at Augmont, noted that holding above the key support level of $85 would keep the broader bullish structure intact for silver.