Silver Futures Crash On Dollar Strength And Easing Iran Tensions — Peter Schiff Says ‘Buy’

The Kobeissi Letter said that silver fell about 22% in roughly two hours, briefly slipping below $74 an ounce and shedding around $17.

• Silver futures slid nearly 9% to about $76.9 an ounce, reversing earlier gains and snapping a two-day winning streak.
• Silver ETFs rose in the prior session, with SLV up 3% and AGQ gaining about 6%.
• Macro factors remained in focus, with the dollar index near two-week highs, and the ECB and BoE expected to hold rates.

Silver futures sank on Thursday, reversing earlier gains as a steadier U.S. dollar, shifting interest-rate expectations, and easing safe-haven demand weighed on prices.

Silver Retreat Follows Failed Rebound

At the time of writing, silver futures were down nearly 9% at around $76.9 an ounce, snapping a two-day winning streak as renewed selling pressure and heightened volatility returned to precious metals, with the recent bounce failing to hold.

The Kobeissi Letter pointed to a roughly 22% drop in silver over two hours, with prices briefly dipping below $74 an ounce and shedding about $17 in the process.

On Wednesday, the iShares Silver Trust (SLV) ETF rose 3% in regular trading and added 2% after hours. TheProShares Ultra Silver (AGQ) ETF climbed around 6% during the session and gained a further about 4% after the close.

Dollar Strength And Rate Outlook Weigh

Part of the pressure came from currency markets. The U.S. dollar held firm at the start of Asian trade, with the dollar index hovering near 96.7, close to a two-week high. The greenback has strengthened as investors have grown more risk-averse amid a volatile earnings season and falling U.S. equities. A firmer dollar typically weighs on dollar-denominated commodities by reducing their appeal to overseas buyers.

In the previous session, the S&P 500 fell 0.5%, and the Nasdaq Composite declined 1.5%, while the Dow Jones Industrial Average rose 0.5%.

Economist Peter Schiff said on X, “Silver is down over $12 this evening, trading just above $75. It was trading over $90 this morning. That's a 17%-off sale. Buy some right now before it ends.” He urged investors to “Buy on line. Don't wait for a call back.”

Central banks were another focus for investors. The European Central Bank and the Bank of England are both expected to maintain rates steady, while Federal Reserve Governor Lisa Cook indicated caution about further easing due to concerns about stalled progress in reducing inflation. Markets have also been digesting the nomination of Kevin Warsh as Federal Reserve chair, who is likely to support a smaller balance sheet and be less dovish on rate cuts.

Geopolitical Risks Remain In Focus

Geopolitical concerns continue to loom, though near-term risks appeared to ease Friday after the U.S. and Iran agreed to hold talks in Oman. Officials from both countries said that disagreement remains on the extent of topics that will be discussed, with Washington wanting negotiations to include Iran's missile program and Tehran saying talks should be confined to its nuclear ambitions. 

How Did Stocktwits Users React?

On Stocktwits, retail sentiment for SLV and AGQ was ‘extremely bullish’ amid ‘extremely high’ message volume.

One user said the Iranians were looking to buy time rather than resolving tensions, warning "the whole world will need to pile into safe metals like gold and silver as tensions and military operations can go worse than expected, causing escalations and chaos."

Another user said, “The silver is making higher lows, and USD is making lower highs in the past 90 minutes.  It's an early signal for potential bottom for Silver and top for USD have been set, and gradual reversal is playing out.” 

While the SLV ETF has surged over 170% over the past 12 months, the AGQ ETF has rocketed over 300% over the same period. 

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