Silver Declines to 1-Month Low

Silver dropped below $74 per ounce on Thursday, sinking to one-month lows as hawkish signals from the US Federal Reserve and surging oil prices weighed on precious metals. The US central bank held its policy rate steady on Wednesday as expected, while flagging upside risks to inflation from the Iran war. The Fed indicated it will not cut rates until inflation shows signs of easing, though it still projects one rate reduction this year. Data on Wednesday also showed US producer prices rose more than expected in February. Meanwhile, oil prices climbed again, with Brent futures exceeding $110 a barrel following fresh attacks on energy infrastructure in the Middle East. Iran launched missile strikes on a Qatari facility housing the world’s largest LNG export plant, one of several targets Tehran vowed to hit after an Israeli strike on Iran’s South Pars gas field.

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.