Silver Hits 4-week High

Silver retreated toward 93.50 dollars on Monday, paring earlier gains as the initial safe-haven spike met resistance from a surging US dollar. The white metal jumped nearly 3% to 96.40 dollars after joint US and Israeli strikes killed Iran’s Supreme Leader, but the rally cooled as investors weighed the risk of a global industrial slowdown. With the Strait of Hormuz effectively closed, 20% of the world's energy flow is under threat, potentially dampening demand for silver in electronics and solar energy. While gold remains near record highs, silver is feeling the squeeze of a "de-risking" event where traders sell profitable assets to cover losses in crashing stock markets. Recent US data showing higher production costs has traders scaling back bets on interest rate cuts, further supporting the dollar. Silver remains in a strong long-term trend, but the immediate path is clouded by the clash between its role as a refuge and its sensitivity to a stalled global economy.

Silver increased to 95.23 USD/t.oz, the highest since January 2026. Over the past 4 weeks, Silver gained 11.84%, and in the last 12 months, it increased 200.61%.

Silver jumped as much as 2.8% to $96.4 per ounce on Monday before paring gains, as traders reacted to a major escalation in the Middle East conflict. The US and Israel carried out strikes on Iran over the weekend, resulting in the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei, and prompting the effective closure of the Strait of Hormuz, a key route for roughly one-fifth of global oil shipments and significant natural gas flows. Tehran retaliated by targeting US assets across the region, including the United Arab Emirates, Bahrain, Kuwait, Qatar, Saudi Arabia, Jordan, Iraq, and Syria. In the US, data on Friday showed producer prices rose more than expected in January, suggesting companies are passing tariff costs to consumers and complicating the path for Federal Reserve rate cuts. Markets are still pricing in two 25-basis-point rate cuts this year amid speculation that recent turmoil could push the central bank to ease monetary policy.