Silver Under Heavy Downward Pressure… What’s Driving the Decline?

Silver is facing clear downward pressure amid lingering uncertainty surrounding the fragile truce between the United States and Iran, while precious metals as a whole continue to struggle in a challenging environment since the start of the year.

After a powerful rally that began in August 2025—driven by a global shift away from reliance on the US dollar—the surge eventually turned into a massive bubble that burst. This led to a sharp collapse in February, when silver lost nearly half of its value in a sudden drop.

Although the decline later stabilized, price action remains far from establishing any sustained upward trend.

With the outbreak of conflict between the United States and Iran, expectations were high that precious metals—particularly gold—would reclaim their traditional role as safe-haven assets.

However, the opposite occurred. Metals retreated whenever oil, the dollar, and equities moved higher, raising questions about whether precious metals at current levels have become more aligned with risk assets than with safe havens.

Following the ceasefire announcement, silver staged a strong rebound, posting gains of up to 35%. Yet it failed once again to break above the $84 per ounce level—a resistance point rejected multiple times—highlighting a loss of momentum amid persistent political uncertainty.

Rising oil prices remain one of the biggest sources of pressure on silver, as they fuel inflation expectations and lead to tighter global monetary policies—an environment that is typically unfavorable for precious metals.

At the same time, the truce between Washington and Tehran remains unstable, leaving silver caught between geopolitical concerns on one side and economic pressures on the other.

From a technical perspective, silver rebounded from a low of $61 during the conflict, but later gave back more than 9.00%.

Despite the recent bounce, silver continues to trade under significant pressure. The unstable ceasefire between Washington and Tehran is preventing the formation of a clear upward trend, while rising oil prices and a stronger dollar continue to weigh heavily on precious metals.