$75 an ounce gave way in the first June session as silver reversed early gains and stayed well below its mid-May two-month peak of $89.4.
Rising oil prices — fueled by fresh Iran-US strikes and Iran's suspension of communications with Washington over Israel's attacks on Lebanon — stoked inflation worries and reinforced expectations of higher-for-longer US rates.
Traders now price roughly a 50% chance of at least one Federal Reserve rate hike by year-end, a backdrop that pressures non-yielding assets such as silver.
Weekend proposals from both sides to revise a draft deal on extending a ceasefire and reopening the Strait of Hormuz offered little certainty, leaving markets focused on this week's US jobs data and Fed remarks.
With a record silver deficit, could Mideast conflict override US rate fears and ignite a historic price surge?
Silver is vital for the green transition. Can the clean energy revolution survive a supply shock from global conflict?
Iran now controls a vital oil chokepoint. What is the doomsday scenario for the global economy if diplomacy fails?