**BREAKING: Silver Extends Losses on Collapsing US-Iran Peace Deal**
Silver prices dropped toward $58.00 per troy ounce during European trading Wednesday, marking the third consecutive session of declines. The selloff intensified after President Trump declared the interim US-Iran truce “finished,” reigniting Middle East tensions and triggering risk-off sentiment across commodity markets.
The non-yielding precious metal is under pressure as geopolitical uncertainty typically benefits gold over silver in flight-to-safety moves. XAG/USD traded around $58.30 during European hours, with traders reassessing positions amid the deteriorating diplomatic situation. The renewed Middle East escalation threatens to disrupt the fragile peace arrangement that had briefly stabilized regional tensions.
Market participants are closely monitoring developments as further deterioration could spark broader volatility across metals markets. Silver’s industrial demand component makes it particularly vulnerable to growth concerns stemming from geopolitical disruptions, while its safe-haven properties remain secondary to gold.
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FXnCO Insight
** Traders should watch the $58.00 support level closely—a breach could accelerate selling toward $57.50 as geopolitical risk premiums shift decisively toward gold.
Source: FXStreet