Silver Falls for Third Session

Silver prices retreated over 4% toward $80 per ounce on Friday as a resurgent US dollar amid fading expectations for interest rate cuts overshadowed the traditional appeal of precious metals. The dollar strengthened as investors sought safety after the United States military announced its largest wave of strikes yet against Iranian targets following the continued blockade of the Strait of Hormuz. While geopolitical instability typically drives demand for silver the prospect of slower economic growth and persistent inflation has limited its role as a store of value as investors favor the US dollar. Market participants have effectively removed expectations for multiple interest rate cuts in 2026 as crude oil prices climbing above $100 per barrel threaten to keep consumer costs elevated. This shift in monetary outlook makes non-interest bearing assets like silver less attractive compared to the safety of the greenback.

Silver decreased 5.06% to 79.577 USD/t.oz

Silver prices rebounded past 84 dollars per ounce on Friday as market participants balanced cooling domestic economic growth against the persistent strength of the US dollar. Despite recent downward revisions to Q4 2025 GDP growth to 0.7% and a slowing annual PCE inflation rate of 2.8%, the dollar remains elevated as a safe haven amidst ongoing geopolitical tensions in the Middle East. This strengthening of the greenback, coupled with the postponement of Federal Reserve rate cut expectations to September, continues to provide a headwind for non yielding assets. While the rebound past 84 dollars suggests underlying support, the white metal remains caught between its dual identity as a store of value and an industrial component vulnerable to broader economic deceleration. Investors continue to monitor energy price volatility and its potential to stoke further inflationary pressure, even as recent data suggests a more temperate consumer spending environment.