Silver Struggles to Reclaim $70 Threshold

Silver prices stabilize near $68.71 after a sharp drop, pressured by a strong US dollar and West Asia tensions, though a long-term supply deficit offers underlying support.

The price of silver failed to breach the psychologically significant $70 per ounce level during Friday's trading session. The precious metal is now stabilizing around $68.71, following a substantial single-day decline of approximately 3.84% on Thursday.

A Strong Dollar and Geopolitical Stalemate

A resurgent US dollar is applying significant pressure on silver markets. A stronger greenback increases the cost of dollar-denominated assets like silver for international buyers, thereby dampening demand. This headwind is compounded by rising bond yields, which diminish the relative appeal of non-yielding precious metals.

Concurrently, stalled diplomatic efforts in West Asia are injecting uncertainty into the market. Iran has formally rejected a US-backed 15-point peace proposal, instead presenting a counter-plan of its own. Despite an extended negotiation window granted by President Trump, contradictory signals from Washington and Tehran continue to fuel market unease and volatility.

Structural Supply Deficit Provides a Floor

Despite these short-term pressures, the fundamental outlook for silver remains robust. Analysts project 2026 will mark the sixth consecutive year of a structural market deficit. This sustained shortfall is primarily driven by relentless industrial demand, with the photovoltaic sector being a particularly powerful consumer.

This underlying scarcity acts as a crucial long-term price support. However, it is currently insufficient to fully offset the immediate macroeconomic crosscurrents of a strong dollar and geopolitical friction.

The path for silver to sustainably trade above $70 appears challenging for now. Market observers suggest a clearer diplomatic resolution in West Asia or a shift in dollar strength may be needed for the metal to mount a decisive recovery.