Silver Slides as Uncertainty Over U.S. Iran Policy Triggers Technical Sell-Off

Silver prices fell sharply overnight from June 19 to June 20, 2025, as traders reacted to a sudden shift in geopolitical risk. The white metal dropped from around $36.33 to lows near $35.55 per ounce, marking a fall of about 2.1% in less than twelve hours.

This move, confirmed by official trading charts at 06:12 UTC, followed news that U.S. President Donald Trump would take two weeks to decide on possible military action against Iran.

The White House’s announcement late Thursday that a decision on intervention in the Israel-Iran conflict would be delayed unsettled global markets. Investors had positioned for an imminent escalation, which typically supports precious metals like silver.

When the immediate threat receded, risk appetite improved, and safe-haven demand for silver faded. The U.S. dollar strengthened as oil prices eased, further pressuring silver prices.

Official sources confirm this narrative. According to Investing.com, silver futures fell 1.6% to $35.77 per ounce during Asian trading as the White House signaled that no U.S. strike on Iran was imminent.

Reuters and The Hindu Business Line both reported that oil and precious metals markets responded directly to the delay. The dollar index also rebounded, reflecting renewed demand for U.S. assets as immediate geopolitical risks appeared less urgent.

Technical analysis of the four-hour and daily silver charts reveals that the decline breached several key support levels. On the four-hour chart, silver broke below the 50-period exponential moving average and touched the lower Bollinger Band.

The Relative Strength Index (RSI) dropped to 28, indicating oversold conditions. The Moving Average Convergence Divergence (MACD) histogram turned negative, confirming a shift in momentum.

The daily chart shows silver closing at $35.60, with the RSI falling from overbought to 55 and the MACD line crossing below the signal line, signaling a short-term downtrend.

Despite the technical setback, the market’s underlying fundamentals remain unchanged. The Silver Institute projects a global supply deficit for a fifth straight year, with industrial demand at record highs.

However, in the past 24 hours, macroeconomic factors and shifting risk perceptions have outweighed these fundamentals. The U.S. dollar’s strength, driven by both safe-haven flows and hawkish Federal Reserve signals, contributed to the sell-off.

ETF flows and physical demand for silver remain robust, but the market’s immediate focus has shifted to geopolitical developments. The two-week delay in the U.S. decision on Iran has removed a key pillar of support for silver in the very short term.

As a result, traders are watching for signs of stabilization above $34.16, a level that, if breached, could signal a deeper correction. Until then, the market remains on edge, balancing persistent supply deficits against the unpredictable pace of U.S. foreign policy.

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