Silver Crashes 10% as Hawkish Central Banks Spark Selloff

Silver plummeted over 10% toward $65 per ounce on Thursday, its lowest since mid-December, as the precious metals rout deepened amid Iran war-driven volatility and hawkish central bank shifts. Investors recalibrated expectations after the Federal Reserve, European Central Bank, Bank of Japan, and Bank of England all held rates but struck more aggressive tones, warning of inflation risks and economic uncertainty tied to the Iran conflict. US policymakers signaled no rate cuts until inflation clearly eases, with Fed Chair Jerome Powell acknowledging a hike remains possible, though unlikely for now. Markets now push Fed easing to 2027 and price in two ECB and BoE hikes this year, weighing heavily on silver’s outlook.

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