Key Takeaways:
Silver rose above $60 per ounce on Wednesday, extending a rebound from last week's lows as escalating US-Iran hostilities drove safe-haven demand and traders awaited the Federal Reserve's June meeting minutes.
"Precious metals are benefiting from a double tailwind — geopolitical risk from the Middle East and expectations that the Fed will signal a path toward rate cuts," said Ricardo Evangelista, senior analyst at ActivTrades. "The FOMC minutes will be scrutinized for any divergence of views on inflation and the labor market."
Spot silver traded at $60.48 per troy ounce on COMEX, up 0.9% from Tuesday's close of $60.93, according to exchange data. The metal had slipped 1.9% in the prior session as a stronger US dollar weighed, before reversing course after the US revoked Iran's authorization to sell crude oil and launched airstrikes against Iranian targets. Brent crude futures rose 2.6% to $76.08 a barrel, while West Texas Intermediate climbed 2.6% to $72.26.
Silver's rebound from support near $72 — a level that held last week — keeps the metal within a $70-to-$89 range that has contained prices since the US-Iran conflict began in February. A break above $89 is needed to establish bullish momentum, while a drop below $70 would threaten the constructive structure and potentially open a path toward the $50-to-$60 zone, according to technical analysis. The relative strength index on the daily chart remains below the midpoint, signaling lingering uncertainty.
Range-Bound Precious Metals Await Catalyst
Gold also gained, with spot prices rising 0.85% to $4,121.90 per ounce on COMEX after climbing more than 1% to $4,560 in the prior session. The yellow metal is consolidating between $4,500 and $4,900, compressing between its 50-day and 200-day simple moving averages. A breakout above $4,900 would sustain bullish momentum, while a move below $4,500 could trigger a decline toward $4,380 and then $4,000.
The drop in oil prices from war-time highs above $120 has eased inflation fears and reduced pressure on the Federal Reserve to raise rates, supporting non-yielding assets. Investors now see about a 58% chance of a US rate cut in September, according to the CME FedWatch tool. The US Dollar Index traded at 100.89, near multi-month lows.
China's central bank extended its gold-buying streak to a 20th consecutive month, with reserves rising to 75.44 million fine troy ounces at end-June from 74.96 million a month earlier, supporting the broader precious metals complex. Hong Kong also launched a central clearing system for gold on Tuesday and revived dollar gold futures trading.
Silver at current levels trades roughly 33% below its January record highs, when heavy speculative buying pushed prices to all-time peaks amid the initial outbreak of geopolitical tensions. The metal's dual role as both a monetary asset and an industrial input — with demand from solar panel manufacturing and electronics — provides a demand floor, though the near-term direction hinges on the Fed's policy stance and developments in the Middle East.
This article is for informational purposes only and does not constitute investment advice.
