Silver prices fell sharply on Thursday after U.S. President Donald Trump signaled a tougher military stance on Iran, prompting a broad repricing across commodity and financial markets. Spot silver dropped 5.1% to $71.26 per ounce, while other precious metals also moved lower as investors shifted toward the U.S. dollar following the White House address.
The decline came after Trump said in a televised speech that the United States would strike Iran “extremely hard” over the next two to three weeks if needed. The remarks reduced expectations for a near-term easing of the conflict and added pressure across metals, equities and rate-sensitive assets. In early European trading, silver was also seen around $70.60, reflecting continued weakness after the overnight reaction.
Gold also declined, falling 2.8% to $4,622.59 per ounce, while platinum and palladium recorded losses. The broader move in metals came as the U.S. dollar strengthened and crude oil prices rose, adding to concern that a longer conflict in the Middle East could keep inflation elevated and reduce expectations for interest rate cuts. Silver, which does not offer yield, often comes under pressure when traders move toward dollar strength and higher rate expectations.
Market sentiment weakened further after Trump’s address did not offer a clear path toward de-escalation. Instead, the speech focused on military pressure and repeated warnings of more forceful action. Investors who had been looking for signs that the conflict could begin to ease reacted by cutting exposure to risk assets and repositioning around commodities, currencies and government bonds.
Dollar Strength and Oil Prices Add Pressure to Silver
The move in silver took place alongside a jump in oil prices after Trump’s comments renewed focus on energy supply risks linked to the Middle East. Brent crude rose sharply in early trading, and higher oil prices added to inflation concerns that were already affecting central bank expectations. A stronger greenback also weighed on metals, as dollar-denominated commodities often become less attractive to holders of other currencies when the U.S. currency rises.
The market reaction extended beyond metals. Stock indexes fell, while U.S. Treasury bonds gained as traders adjusted for a more defensive environment. The shift reflected broader concern that any extension of the conflict could affect shipping routes, energy markets and global economic activity. Trump also failed to provide a firm exit strategy in his remarks, keeping uncertainty elevated across asset classes.
Iran’s response added to the tense backdrop. The country’s Revolutionary Guards said American and Israeli strikes had not destroyed key military capabilities, including missile production centers, long-range drones, and air defense systems. That response suggested the conflict remained active even as the United States described its objectives as nearing completion.
Technical Levels Come into Focus After Silver Sell-Off
Alongside the geopolitical reaction, traders also watched chart levels that had been developing before the latest drop. Silver had recently tested a resistance area after rising from the $61 zone and moved near a key Fibonacci retracement level around $75.47. That area had been viewed as an important decision point for short-term direction.
The decline pushed silver away from that resistance level and back toward support. Analysts tracking the chart structure identified the area around $72.41 as an important pivot. A move below that zone could leave the market exposed to further weakness toward the mid-$60s, with $66 mentioned as a possible retracement area in the event of continued downside pressure.
Source: X
At the same time, the upside threshold remained near $77.96 to $78. A break and hold above that region would weaken the immediate bearish setup and could reopen the path toward a higher recovery zone near $85.21. For now, silver remains below that ceiling, leaving traders focused on whether support can hold after Thursday’s sharp fall.