Silver July futures erased initial gains amid Middle East tensions and stalled negotiations, despite a 132.6% year-over-year rally.
Silver July futures opened at $77.30 per ounce, up 0.9% from Tuesday’s close, but slid to $74.11 by 7:50 a.m. ET. The decline follows recent U.S. military strikes in the Middle East, which heightened geopolitical uncertainty despite a holding ceasefire agreement between the U.S. and Iran.
Prices remain elevated compared to prior periods, with gains of 2.3% over the past week, 2.7% over the past month, and 132.6% year-over-year. However, this marks a slowdown from the 173.3% annual growth recorded on May 14. Investors are awaiting further developments in regional negotiations, which could impact energy costs and safe-haven demand.
Analysts suggest disruptions in energy markets may persist even if an agreement is reached, potentially sustaining volatility in precious metals.