Silver prices surged more than 4% on Thursday following a dramatic intraday reversal from $61.51, the lowest level since March 23. The rally came after US President Donald Trump announced the cancellation of planned military strikes against Iran, stating that final points of an agreement have been approved. The precious metal had been under severe pressure before Trump’s announcement provided relief to nervous markets.
The geopolitical de-escalation sparked an immediate repricing across safe-haven assets as traders adjusted positions following the unexpected diplomatic breakthrough. Silver traders who had been bracing for further conflict-driven volatility saw rapid short-covering activity push prices sharply higher from session lows. The metal remains in technically bearish territory despite Thursday’s bounce, suggesting underlying weakness persists in the broader precious metals complex.
Market participants with exposure to precious metals and related derivatives should monitor whether this recovery holds or proves temporary.
FXnCO Insight
Traders should watch for sustained price action above recent lows to confirm whether this geopolitical relief rally has legs or represents merely a technical bounce in an ongoing downtrend.
Source: FXStreet