Silver Steady, Dollar Rebounds, and Iran Risks Keep Volatility at Bay
Silver prices moved relatively flat on Thursday (March 5), holding around US$83.83 per ounce, up slightly (around 0.8%) compared to the previous close, as a strengthening dollar again limited the precious metal's upside amid uncertainty over the US-Iran conflict.
The market remained cautious as the US-Israel conflict against Iran entered its sixth day, maintaining a geopolitical risk premium and making silver's movements sensitive to escalatory headlines. In the latest development, a US submarine attack that sank an Iranian warship off the coast of Sri Lanka heightened concerns about the conflict spreading beyond the Middle East.
On the other hand, the market briefly gained some optimism after reports emerged that Iran was exploring the possibility of peace talks with the US. However, Tehran later denied any such approach, leading market participants to reckon with the duration of the conflict and the risk of longer-term economic disruption.
The Trump administration is also seeking to reassure the market regarding the continuity of commercial activity in the Gulf region. This effort is crucial for sentiment, as any disruption to energy logistics has the potential to drive up inflation and strengthen the dollar, which typically pressures dollar-priced precious metals.
Beyond geopolitics, policy factors also came into focus after US Treasury Secretary Scott Bessent said the 15% global tariffs announced by President Donald Trump are expected to take effect this week. The combination of geopolitical risks and tariffs heightens macroeconomic uncertainty, keeping silver within a narrow range with a headline-driven bias.
Source: Newsmaker.id
