Key Takeaways:
Silver slipped to near $76 an ounce on May 26, erasing gains from the prior session after the US launched fresh strikes on Iran.
"The peace trade is more fragile than Monday's price action suggested," said Patrick Munnelly, market analyst at Tickmill. He said the latest round of strikes "complicates hopes for an interim deal to extend the ceasefire and reopen the Strait of Hormuz."
Silver opened at $77.01 on COMEX before sliding to $76.11 in early trading. The metal had climbed from $75.40 at the end of last week to above $78.50 on Monday after President Donald Trump said a memorandum of understanding in talks to end the war on Iran "has been largely negotiated." The US then struck Iranian missile launch sites and vessels overnight, according to defense officials. A senior Iranian delegation is traveling to Qatar for fresh talks.
Silver has lost 19.7% since the war with Iran began on March 2. The metal is trading 129.4% higher than a year ago, though that compares with 173.3% growth as of May 14. Gold followed a similar pattern, climbing from about $4,500 an ounce on Friday to $4,570 on Monday before easing to $4,535 on Tuesday. Copper also surged, with US futures reaching $6.44 a pound and LME copper trading at $13,667.50 a tonne at one stage.
On the four-hour timeframe, silver is pulling back toward a support zone comprising former resistance at $77 and the uptrend from the May 20 lows, according to Investing.com technical analysis. The RSI (14) is holding above 50 while MACD has pushed marginally into positive territory, though the flattening in both indicators suggests near-term momentum has stalled. A break above the double top at $78.90 from May 19 could set the stage for a move toward $82 to $83, where the price traded earlier this month.
The US dollar remains the dominant near-term influence on silver, with the inverse correlation between XAG/USD and DXY staying consistently strong across all timeframes, per TradingView data. While bond yields influence silver over longer horizons, crude oil and the dollar have become the primary near-term drivers as markets react to shifting expectations around inflation and the Federal Reserve's rate path.
The broader mining complex rallied Tuesday. Endeavour Mining led the FTSE 100, up 3.5%, while Rio Tinto gained 2.3%, Glencore rose 2.2%, Antofagasta added 1.9%, Anglo American climbed 1.4% and Fresnillo advanced 0.8%.
This article is for informational purposes only and does not constitute investment advice.
