Silver Holds Losses on Middle East Tensions

2026-06-08 00:45 By Jam Kaimo Samonte 1 min. read

Silver traded near $68 an ounce on Monday after tumbling nearly 10% last week to its lowest level in more than two months, as renewed tensions in the Middle East drove oil prices higher and fueled concerns about inflation and interest rates.

Iran launched several rounds of missiles toward Israel in a warning against further military actions in Lebanon, though Israel's military said all the projectiles were intercepted and no casualties were reported.

The prolonged conflict and the continued near-closure of the Strait of Hormuz have disrupted energy supplies from the Persian Gulf, supporting higher oil prices and intensifying inflation concerns.

At the same time, stronger-than-expected US employment data weighed on precious metals last week by reinforcing expectations that the Federal Reserve could raise interest rates later this year.

Markets are now pricing in roughly a 70% chance of a Fed rate hike in December, up from around 50% before the jobs report.



News Stream
Silver Rebounds From Two-Month Lows
Silver climbed back above $61 an ounce on Thursday, attempting to recover from near two-month lows after softer-than-expected US inflation data reduced expectations of a Federal Reserve rate hike in October. Gains were limited, however, by higher Treasury yields and a stronger dollar. US inflation rose less than expected in August, while the previous month’s price pressures were revised lower. Markets now see less than a 40% chance of an October hike, while still pricing in nearly a 90% probability of a December increase. 10-year Treasury yields reached their highest level since 2002, increasing the opportunity cost of holding non-yielding silver, while a firmer dollar also weighed on the metal. Focus now turns to Friday’s September nonfarm payrolls report, expected to show a gain of around 90,000 jobs, along with comments from Fed policymakers. US-Iran talks on reopening the Strait of Hormuz and ending the Middle East conflict also remain stalled.
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Silver Gains on Soft US PCE Inflation Data
Silver rose above $61 an ounce on Thursday, rebounding from two-month lows as softer-than-expected US PCE inflation data reduced expectations for a Federal Reserve interest rate hike this month. The US PCE price index rose 0.3% in August, below the 0.4% forecast, while core PCE increased 0.2%, also coming in below expectations for a 0.3% gain. Markets now see roughly a 38% chance of a Federal Reserve rate hike in October, down from 51% before the PCE release. Oil prices also eased amid signs of improving energy flows from the Middle East, despite continued deadlock in US-Iran negotiations. Meanwhile, Treasury yields remained near multi-decade highs amid concerns over persistent energy-driven inflation, which could lead to tighter monetary policy. Traders continue to price in around a 97% probability of a Fed rate increase in December.
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Silver Slides to Near 2-Month Low
Silver fell toward $60 an ounce on Thursday, hitting its lowest levels in nearly two months as elevated oil prices and Treasury yields outweighed support from softer-than-expected US inflation data. The US PCE price index rose 0.3% in August, below the 0.4% forecast, while core PCE increased 0.2%, also falling short of expectations for a 0.3% gain. On an annual basis, headline PCE inflation came in at 3.4%, below the expected 3.7%. Markets now see roughly a 38% chance of a Federal Reserve rate hike in October, down from 51% before the PCE release. Meanwhile, oil prices remain elevated as the US and Iran make little progress in negotiations despite signs of recovering Middle East flows. Treasury yields also climbed to multi-decade highs amid concerns over persistent energy-driven inflation, which could prompt tighter monetary policy.
2026-10-01