Silver opens lower after US targets Iranian drones near Strait of Hormuz

Silver futures opened sharply lower on Thursday, with July contracts falling 3% to $72.65 per ounce, before recovering slightly to $73.20. The decline followed reports that the US military conducted defensive strikes against Iranian drones near the Strait of Hormuz, a critical chokepoint for global oil and shipping lanes.

The US said it targeted multiple Iranian drones heading toward a commercial vessel in the strait and also struck a drone-launching site nearby. The Strait of Hormuz is a vital waterway through which about 20% of the world's oil passes, and any disruption there can fuel safe-haven demand for precious metals. However, silver initially sold off along with other risk assets as traders assessed the potential for broader conflict. For precious metals traders, the geopolitical premium often supports gold and silver prices, but the immediate reaction was a flight to liquidity, with silver's industrial demand component adding to the downside pressure. Traders can track real-time silver price movements on NowPrice's live dashboard to monitor how the situation evolves.

Looking ahead, markets will focus on any further military developments in the region, as well as US economic data that could influence the Federal Reserve's policy path. A sustained escalation could push silver higher as a safe haven, while a de-escalation might see prices consolidate. Key levels to watch include the $72 support and the $75 resistance zone.