FX.co ★ Silver Muted Amid Escalating Middle East Crisis

Silver prices remained around $36 per ounce on Monday, stabilizing after two consecutive days of decline. This occurred as markets reacted to a significant escalation in Middle East tensions. Over the weekend, the U.S. launched airstrikes on three Iranian nuclear sites, joining forces with Israel in its conflict with Iran, and sparking concerns over potential Iranian retaliation. The heightened geopolitical risk propelled demand for the U.S. dollar as a safe haven, which in turn exerted downward pressure on both silver and gold prices. Last week, silver prices surged to heights not seen in over 13 years, driven by safe-haven inflows—particularly as an alternative to gold—coupled with indications of robust industrial demand and tight supply conditions. However, the recent rally has faltered, with declines attributed to profit-taking and liquidity pressures as investors moved to cover losses in other asset classes.