Key Takeaways:
- Silver spot falls 0.97% to $58.60 as US-Iran military strikes escalate
- US and Iran exchange attacks on military and commercial targets in the Gulf
Price Snapshot (June 29):
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Silver slides to $58.60 as US-Iran strikes renew supply fears
Silver slipped 0.97% to $58.60 an ounce on Comex during morning trade Monday, as renewed US-Iran military strikes stoked energy supply concerns that strengthened the dollar and pressured industrial metals.
The decline tracked a broader precious metals pullback, with spot gold falling 0.37% to $4,081 an ounce on Comex, according to exchange data. On the Multi Commodity Exchange of India, gold futures for August delivery slipped 0.35% to Rs 1,43,658 per 10 grams, while silver futures for July declined 0.21% to Rs 2,23,000 per kilogram.
The latest round of hostilities began after Iran struck a Singapore-flagged commercial vessel in the Strait of Hormuz on June 25, prompting US retaliatory strikes on Iranian missile and drone storage facilities. Iran's Islamic Revolutionary Guard Corps responded by launching ballistic missiles and drones at US military facilities in Kuwait and Bahrain, claiming to have destroyed eight facilities at Ali al-Salem Air Base and the Fifth Fleet naval base in Port Salman.
US Central Command said American fighter jets struck 10 Iranian military targets in and around the strait, including air defense systems, communication facilities and drone storage sites. President Donald Trump warned on Truth Social that if Iran continued to violate the ceasefire, the US military would "complete the job" and that "the Islamic Republic of Iran will no longer exist."
The 14-point memorandum of understanding signed June 17 between the US and Iran called for an immediate end to hostilities and guaranteed safe passage for commercial vessels through the Strait of Hormuz for at least 60 days. Iran has insisted all ships must use a northern route near its coastline, while the US and Gulf Arab states have encouraged vessels to use an alternative southern corridor near Oman. About 115 vessels and 2,500 sailors have been evacuated from the Persian Gulf via the strait since June 23, according to the UN International Maritime Organization.
Silver's decline comes despite the metal's traditional safe-haven appeal, as industrial demand concerns from a potential energy supply disruption weighed on prices. Gold, which typically benefits more directly from geopolitical uncertainty, also edged lower as the dollar strengthened on elevated oil prices. Brent crude traded near $72 a barrel, not far from pre-war levels, as traders weighed supply disruption risks against the potential for a broader ceasefire breakdown.
Iran's year-on-year inflation reached 88.6% in June, according to the Statistical Centre of Iran, with food prices more than doubling, adding economic pressure on Tehran as the conflict drags on. The next catalyst for precious metals will be any further escalation in the Gulf or signs of progress in US-Iran negotiations, which a US official said were set to continue despite the weekend's exchanges.
This article is for informational purposes only and does not constitute investment advice.
[1] Silver Price Forecast: XAG/USD declines to near $58.60 as US-Iran attacks renew energy supply concerns[2] Gold and silver price today, June 29: Check rates of 24K, 22K gold in Delhi, Mumbai, Kolkata other cities[3] Trump again threatens Iran with warning it will 'no longer exist': What to know[4] Iran threatens "complete halt" to talks after trading strikes with U.S.; Washington official says talks to continue[5] US-Iran Ceasefire Under Strain After New Military Strikes
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