Silver prices dropped below the $80 mark on Tuesday, reflecting ongoing uncertainty in global markets. The price of one ounce fell by 80 cents, reaching $78.92. As a result, the price of one kilogram of silver now stands at approximately $2,538 in international markets.
Traders are closely watching political developments between the United States and Iran. A two-week ceasefire between the two sides is set to expire on Wednesday. Investors are waiting to see whether negotiations will take place in Islamabad and what outcomes may follow. This uncertainty continues to influence commodity prices, including silver.
At the same time, U.S. President Donald Trump stated that extending the current ceasefire remains unlikely if both sides fail to reach an agreement before the deadline. He also emphasized that the Strait of Hormuz will remain closed until a deal is secured. These statements have increased concerns about regional stability and global trade routes.
Tensions in the Middle East have disrupted energy supply chains and raised fears of inflation. As a result, expectations of higher interest rates by central banks have increased. Higher interest rates often reduce demand for precious metals like silver, as investors shift toward interest-bearing assets. Consequently, these factors have placed additional pressure on silver prices in recent weeks.
Since the start of the Iran conflict, silver prices have dropped by nearly 15 percent. This steady drop highlights the strong connection between geopolitical risks, financial markets, and commodity prices. Analysts expect continued volatility in the coming days as investors react to political developments and economic signals worldwide.
