Silver falls sharply as US-Iran diplomatic gains ease safe-haven demand

Silver Drops as US-Iran Tensions Ease, Sending Safe-Haven Demand Lower

Silver fell sharply on Tuesday, declining more than 4% to $62.19 per ounce as easing geopolitical tensions between the United States and Iran drained safe-haven demand from precious metals markets.bkam

De-escalation Drives Selloff

The drop followed a series of diplomatic breakthroughs that began with a 14-point memorandum of understanding signed on June 17 between Washington and Tehran. On Monday, the US Treasury announced a 60-day sanctions waiver permitting the production, transport, and sale of Iranian oil, valid until August 21. Iran’s chief negotiator also confirmed an agreement to release $12 billion in frozen Iranian assets in two installments of $6 billion each.aljazeera

The developments built on high-level talks in Switzerland where US Vice President JD Vance confirmed that the Strait of Hormuz remained open to commercial traffic. Oil prices had already fallen more than 3% on Monday as supply concerns diminished, and precious metals followed as investors reassessed the geopolitical risk premium that had supported gold and silver prices throughout the conflict.reuters

Morocco Holds Rates Steady

Separately, Bank Al-Maghrib held its second quarterly board meeting of 2026 on Tuesday, June 23. The Moroccan central bank was widely expected to maintain its benchmark rate at 2.25%, a level it has held since June 2024 after a cumulative 75 basis points of cuts. According to a Fitch Solutions analysis published in March, the bank was forecast to hold rates through 2026, with the US-Iran conflict tilting risks toward potential hikes due to fuel-driven inflation and dirham weakness.moroccoworldnews

Morocco’s economy has been buoyed by infrastructure investment tied to preparations for the 2030 FIFA World Cup, with non-agricultural growth projected at around 4.5% in both 2025 and 2026. At its March meeting, the bank cited “significant uncertainty surrounding the global outlook” as a key factor in its decision to hold.bkam

Markets Recalibrate

The silver selloff marks a broader recalibration across commodity markets as the US-Iran peace process advances. When the conflict began on February 28, silver traded near $84.50 per ounce; by early June it had already fallen to roughly $65. Tuesday’s decline pushed prices toward the $62 support level that analysts at TradingKey had identified as a key threshold. Gold also fell, with spot prices declining around 1% to approximately $4,150 per ounce.goldsilver