Silver prices (XAG/USD) opened the week lower on Monday (May 4), pressured by a strengthening US dollar and rising US Treasury yields, which triggered profit-taking. This makes non-yielding assets like silver relatively less attractive when opportunity costs rise.

Market uncertainty was also fueled by developments in the Strait of Hormuz. Iranian government-affiliated media reported that missiles were fired at a US Navy vessel near the strategic waterway after the vessel allegedly ignored warnings from the Iranian Revolutionary Guard Corps. US officials denied any ships were hit, but the incident underscored the fragile security situation in the region.

Meanwhile, Washington launched a naval initiative to secure commercial shipping lanes, prompting Tehran to warn of potential retaliation if its military presence increased. The lack of diplomatic progress between the two countries has kept tensions high and maintained a risk-off sentiment in the market.

For silver, pressure comes from two

For silver, pressure comes from two main channels: a strengthening dollar, which makes dollar-denominated commodities more expensive for mancanegara buyers, and rising yields, which dampen interest in non-coupon assets. Markets will monitor Hormuz developments and the direction of US yields as key determinants of silver's movement in the near term