Silver prices slipped to around $71.90 during the Asian session on Friday, pressured by profit-taking and easing geopolitical tensions that reduced demand for safe-haven assets. Meanwhile, U.S. initial jobless claims rose more than expected last week, coming in above market forecasts.
Silver prices (XAG/USD) slid to around $71.90 during Asian trading on Friday, marking their lowest level since January 2, as the metal extended recent losses amid easing geopolitical tensions and profit-taking. Market participants are closely watching scheduled U.S.–Iran talks later in the day for further cues.
Diminishing tensions between Washington and Tehran have weighed on safe-haven demand for precious metals. Iran has signaled it wants discussions to center on its long-running nuclear dispute with Western powers, while the U.S. is pushing to broaden the agenda to include Iran’s ballistic missile program, its alleged support for armed groups in the Middle East, and its human rights record.
Analysts note that recent price action has been driven largely by speculative flows, leveraged positioning, and options-related trading rather than underlying physical demand. Sunil Garg, managing director at Lighthouse Canton, said a substantial buildup of speculative positions has yet to be fully unwound.
Meanwhile, signs of softening in the U.S. labor market could limit further downside by pressuring the U.S. dollar and lending some support to dollar-denominated commodities. Data from the U.S. Bureau of Labor Statistics showed job openings unexpectedly fell in December to their lowest level since 2020, while layoffs increased. In addition, applications for unemployment benefits rose more than anticipated last week.
Sources: Lallalit Srijandorn
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