Silver slips to £44 an ounce on profit-taking after geopolitical rally

Silver eased to roughly £44 per troy ounce on Thursday, retreating from Wednesday's highs after a sharp three-day rally. In dollar terms the metal fell 1.9% to around $59.15. Gold also declined, sliding 1.35% to $4,096 per ounce, or about £3,057 in sterling at today's exchange rate (these figures are approximate).

The pullback reflects profit-taking by traders who had ridden a flight to safety rally from Monday to Wednesday. Escalating tensions around the US-Iran conflict and warnings about shipping disruptions through the Strait of Hormuz had pushed both metals sharply higher earlier in the week. Silver had even touched $60.55 on Wednesday, its highest level in several days.

For UK buyers, the retreat is a normal part of how commodities behave. Volatility in both directions is ordinary, especially when geopolitical news drives trading. Despite today's decline, both metals remain well above their lows from earlier in July.

Silver's longer case remains unchanged. The metal faces a sixth consecutive year of global supply deficit, with industrial demand from solar panels, electric vehicles and data centres continuing to exceed mine production and recycling supply. Forecasters see prices averaging around £60 this year, though none of this is financial advice. Remember to compare all-in costs: spot price plus dealer premium and any delivery or storage fees.