Silver Extends Rally into 2026

Silver prices pared most of their early losses to trade only slightly lower at $83.9 per ounce on Monday, as traders continued to assess the conflict with Iran and its economic implications. A surge in energy markets pushed oil prices above $100 a barrel, fueling concerns about accelerating inflation and increasing expectations that central banks worldwide and particularly the Fed may need to adopt a more hawkish stance to contain price pressures. A stronger dollar and rising bond yields also weighed on metal prices, while safe-haven demand provided little support. Silver has fallen about 10% since the start of the conflict with Iran. Additionally, the metal faced further pressure from worries that higher energy costs could slow global growth and weaken industrial demand, a key pillar of silver consumption.

Silver dropped as much as 5.7% to $79.7 per ounce on Monday before trimming losses, as a stronger dollar and fading expectations of Federal Reserve rate cuts outweighed safe-haven demand tied to the escalating Middle East conflict. Oil prices surged above $100 per barrel for the first time since 2022 as the war with Iran entered its second week, fueling concerns about renewed global inflation. Disruptions intensified after oil tankers were effectively blocked from the Strait of Hormuz, prompting several Middle Eastern producers to curb crude output. The conflict has already halted roughly a fifth of global crude and natural gas supply as Iran targets ships in the vital shipping route. The surge in energy prices could complicate the Fed’s policy outlook, reinforcing bets that interest rate cuts may be delayed. In addition, silver faced further pressure from concerns that higher energy costs could slow global growth and dampen industrial demand, a key pillar of consumption for the metal.

Silver fell more than 1% to below $84.5 per ounce on Monday as a stronger US dollar and fading expectations of Federal Reserve rate cuts outweighed safe-haven demand tied to the escalating Middle East conflict. Investor concerns about the conflict’s economic impact intensified after oil prices surged above $100 per barrel, fueling fears of renewed global inflation and reinforcing expectations that the Federal Reserve may delay interest rate cuts. As the war with Iran enters its second week and oil tankers remain effectively blocked from the Strait of Hormuz, several Middle Eastern producers, including Kuwait, Iraq and the UAE, have reduced crude output as storage capacity begins to fill up.