Selling silver amid strong US labor market data and new wave of Middle East tensions

Last week, a combination of rising American Treasury yields and a strengthening dollar weighed heavily on silver. Robust Nonfarm Payrolls for May boosted market expectations of the Federal Reserve’s (Fed) hawkish posture, leading some investors to once again price in a rate hike by the end of the year—a clearly negative factor for the previous metal, as it generates no interest income. Meanwhile, high yields on dollar-denominated assets continue to attract significant attention.

On the fundamental side, silver remains resilient due to industrial demand from the electronics sector, solar panel production, auto manufacturing, and energy infrastructure. In 2026, the deficit issue is likely to persist. This provides long-term support for the metal—especially if investment interest in bullion, coins, and other silver-linked assets keeps recovering.

Nevertheless, the short-term picture remains murky. Geopolitical jitters in the Middle East and strong demand for safe havens—primarily US bonds and the greenback—are now dulling the precious metal’s shine. If the situation in the region escalates, the dollar is likely to strengthen further, Treasury yields will climb, and the Fed’s policy could become even tighter. All in all, this is an unfavorable environment for silver, which will cap its growth potential.

The technical setup is also bearish. Prices have just broken below the $70.60 support level and appear poised to dive deeper. The next downside target could be $60.90.

The final recommendation:

— Sell silver at the current price, aiming for $60.90 within a month.

— Place Stop Loss slightly above the support level at $70.60 to manage risks if quotes move in the opposite direction.