Silver Hits 4-week Low

Silver decreased 5.45% to 74.993 USD/t.oz

Silver prices fell toward $76.9 per ounce on Wednesday as a hawkish hold from the Federal Reserve and upwardly revised inflation forecasts heightened the opportunity cost of holding non-yielding precious metals. This downward pressure follows the FOMC decision to maintain the federal funds rate at the 3.5%–3.75% target range while projecting only one rate reduction for 2026. While geopolitical instability intensified following airstrikes on Iranian energy infrastructure and the killing of intelligence minister Esmaeil Khatib, the Fed raised its 2026 Core PCE inflation forecast to signal a more restrictive long term policy path. Policymakers expressed concern that the closure of the Strait of Hormuz could trigger a structural energy shock to offset signs of a softening labor market. Consequently, silver remains vulnerable to elevated Treasury yields and a stronger dollar as investors weigh a 2.4% GDP growth projection against the persistent risk of stagflationary pressures.

Silver fell toward $76.8 per ounce on Wednesday to trade at its lowest level in a month as hot US producer inflation and a stronger dollar overshadowed the safe haven appeal of escalating Middle Eastern tensions. This downward movement reflects a market grappling with a 0.7% surge in February wholesale prices that pushed Treasury yields higher and bolstered the greenback ahead of the Fed's policy decision. While geopolitical risks remain elevated following the killing of Iranian national security chief Ali Larijani and fresh strikes on Persian Gulf energy infrastructure, the rising opportunity cost of holding non yielding assets has forced a repricing of the interest rate outlook. Investors are now closely monitoring the FOMC dot plot and Chair Powell’s press conference to see if persistent price pressures will further delay anticipated cuts for 2026. Silver remains under pressure as the effective closure of the Strait of Hormuz tilts global inflation risks to the upside.