According to the Korea Gold Exchange on July 13, the trading price of silver (Silver, 3.75g) was recorded at 11,810 won for buying and 9,970 won for selling. The buying price fell by 130 won (1.1%) from the previous day, and the selling price also dropped by 120 won (1.2%).

While silver prices are undergoing a mild short-term correction, volatility is expected to increase going forward as the military clash between the United States and Iran expands to the Gulf region.

■ Impact of the U.S.-Iran Conflict on Silver Prices

Recently, the United States carried out additional airstrikes targeting Iran's missile and drone facilities as well as its military infrastructure. In response, Iran has been expanding its range of attacks targeting Gulf countries where U.S.-related facilities are located. Iran announced the closure of the Strait of Hormuz, but the United States maintains that ship passage through alternative routes remains possible. As claims from both sides conflict, uncertainty over energy transportation has yet to be resolved.

Concerns over war and maritime shipping disruptions traditionally stimulate buying sentiment for precious metals. However, rising international oil prices are increasing the burden of U.S. inflation and interest rates, which in turn acts as a factor pressuring silver prices.

■ Two Pathways Affecting Silver Prices

Silver, along with gold, is classified as a major precious metal, but its price fluctuation structure is more complex than that of gold. When financial market uncertainty grows, demand for safe-haven assets may flow in. On the other hand, silver also has strong characteristics as a raw material used in solar panels, electronics, automobiles, and industrial equipment. If the war is prolonged and global economic growth forecasts decline, industrial demand for silver may also slow down.

Currently, the most direct pathway through which the U.S.-Iran conflict affects silver prices is international oil prices. As the likelihood of crude oil transportation disruptions in the Middle East region increases, prices of Brent crude and West Texas Intermediate (WTI) have recently risen by more than 3%. Rising oil prices lead to simultaneous increases in transportation and production costs, which could once again intensify inflationary pressure in the United States.

[This article is intended to provide information about market trends and does not constitute investment advice. Investment decisions and their consequences are the sole responsibility of the investor.]