Silver traded near $82.20 in early Asian dealings on Friday. Support came from the ongoing US-Israeli campaign against Iran, which raised demand for safe-haven assets.
Iran launched missile and drone strikes across the Gulf on Thursday, with attacks reported in the United Arab Emirates, Bahrain, Qatar, and Kuwait. US President Donald Trump said Iranian officials had contacted him about ending the war, while he said it was too late and that the US was seeking to destroy Iran.
Iranian Foreign Minister Abbas Araghchi said Iran had not requested a ceasefire and did not plan to negotiate. The conflict has kept focus on assets such as Silver.
Markets are also watching the US February employment report due later on Friday. Nonfarm Payrolls are forecast to rise by 59,000, while the Unemployment Rate is expected to stay at 4.3%.
Stronger US labour figures could support the US Dollar and weigh on dollar-priced Silver. Silver prices can also be influenced by interest rates, the US Dollar, supply from mining and recycling, and demand from industry such as electronics and solar energy.
Looking back a year to early March 2025, we see silver prices were elevated around $82, largely driven by the US-Iran war premium. Today, with the conflict having de-escalated following the November ceasefire agreement, that safe-haven bid has significantly unwound. The current price of around $46.50 reflects this more stable geopolitical environment.
Our focus now is less on conflict and more on the US Federal Reserve’s path, which is guided by economic data. While we were anticipating a weak 59,000 job gain in February 2025, the latest report for February 2026 showed a much healthier addition of 155,000 jobs, keeping unemployment low at 4.1%. This labor market strength supports a firm US Dollar, which continues to act as a headwind for silver prices.
Despite the pressure from a strong dollar, we must consider the industrial demand component. Reports from the International Energy Agency showed global solar panel installations grew by 15% in the last quarter of 2025, a trend expected to continue through 2026. This robust industrial consumption provides a solid floor of support for the price, preventing a more severe downturn.
We are also closely watching the gold-to-silver ratio, which has widened significantly over the past year. Historically, a ratio above 85 has often signaled that silver is undervalued relative to gold, and today it sits near 90. For derivative traders, this suggests potential opportunities in relative value strategies, such as going long silver against a short position in gold.
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