Commodities

Silver slides as the US dollar steals the safe-haven spotlight

Nikos Tzabouras Written by Nikos Tzabouras

XAG/USD Analysis

The precious metal fails to benefit from risk aversion, as the USDOLLAR outshines it, emerging as the safe haven of choice during the flight to safety sparked by the US-Israeli strikes against Iran. Moreover, prospects of a prolonged conflict create additional challenges for silver. The Strait of Hormuz is effectively shut, sending oil prices higher, while broader trade disruptions loom. This creates fresh headwinds for the global economy, already strained by tariffs, which could eventually weigh on silver consumption and prices.

As a result, XAG/USD heads for weekly losses, which could lead to deeper pullbacks toward last month's lows. Meanwhile, the precious metal remains susceptible to volatility given rising speculative interest.

On the other hand, XAG/USD is attempting to defend the EMA200 and a successful effort would reaffirm the bullish outlook. The USDOLLAR continues to face challenges and silver can still attract safe-haven flows that would add to industrial demand, keeping the road open to new all-time highs.

The military conflict alongside trade antagonism could accelerate broader de-dollarisation and currency debasement trends, weighing on the greenback and allowing silver to benefit from risk aversion. Moreover, the conflict highlights silver's strategic importance given its crucial role in the defence industry. At the same time, demand is underpinned by its use in the AI boom as hyperscalers keep spending on infrastructure, and by the clean energy transition, which continues despite headwinds.

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.

As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.

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