Silver Pares Early Momentum
2026-03-02 13:56
By
Felipe Alarcon
1 min. read
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.