Silver surged more than 3% on Friday, May 8, trading near $80 per ounce as a weakening U.S. dollar and escalating military confrontations in the Strait of Hormuz fueled safe-haven demand for precious metals.
Dollar Weakness and Rate Expectations
The U.S. Dollar Index fell below 98 during Thursday’s session, extending a multi-day decline as markets digested softening labor data and rising expectations of a potential US-Iran peace agreement. The dollar’s slide made USD-denominated commodities like silver more attractive to international buyers, amplifying the metal’s rally. According to USA Today, silver was priced at $79.93 per ounce as of May 8, while technical analysts noted the metal was testing resistance near $82.50 with further upside potential toward $90.
The weaker greenback followed a Labor Department report showing U.S. employers added 115,000 jobs in April, a deceleration from March’s revised 185,000, according to The Wall Street Journal. Falling interest rates also supported silver, which as a non-yielding asset benefits when the opportunity cost of holding it declines.
Strait of Hormuz Escalation
The geopolitical backdrop intensified throughout the week. On Thursday, three U.S. Navy destroyers came under missile, drone, and small-boat fire from Iranian forces while transiting the Strait of Hormuz, according to U.S. Central Command. The U.S. military responded with strikes on Iranian positions at Bandar Abbas and Qeshm Island.
By Friday, U.S. forces had fired on two Iranian oil tankers attempting to evade an American-enforced blockade of the strait, NPR reported. The escalation followed months of disruption to the critical waterway, which has been largely blocked since February 2026 when the U.S. and Israel launched airstrikes on Iran. Iran’s foreign minister accused Washington of “reckless” attacks, while Secretary of State Marco Rubio said the U.S. expected to hear from Tehran on Friday.
Broader Precious Metals Outlook
Silver’s rally mirrors strength across the precious metals complex. Gold was trading above $4,700, also supported by safe-haven flows and easing overbought conditions. Analysts noted that silver retains further upside potential as long as geopolitical uncertainty persists and the dollar remains under pressure, with Bank of America forecasting an additional 8% decline in the DXY for 2026.
