Silver Hits Multi-Month Low on Fed Rate Outlook

2026-07-17 13:30 By Joana Ferreira 1 min. read

Silver hovered around $55.5 an ounce on Friday, its lowest level since late November 2025, as rising oil prices fueled inflation concerns and reinforced expectations that the Federal Reserve will keep interest rates higher for longer.

Geopolitical tensions escalated after Iran launched fresh strikes on US facilities in the Middle East, following a sixth consecutive night of US attacks on Iranian military targets that continued to disrupt shipping through the Strait of Hormuz.

Adding to the pressure, Dallas Fed President Lorie Logan called for a rate hike, while Fed Vice Chair Philip Jefferson said he would support tighter policy if inflation failed to show near-term improvement.

Markets now assign roughly a 50% probability to a September rate increase.

Meanwhile, data released during the week showed US consumer and producer prices both declined in June, largely reflecting lower energy costs, while import prices unexpectedly increased.



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Silver Hits Multi-Month Low on Fed Rate Outlook
Silver hovered around $55.5 an ounce on Friday, its lowest level since late November 2025, as rising oil prices fueled inflation concerns and reinforced expectations that the Federal Reserve will keep interest rates higher for longer. Geopolitical tensions escalated after Iran launched fresh strikes on US facilities in the Middle East, following a sixth consecutive night of US attacks on Iranian military targets that continued to disrupt shipping through the Strait of Hormuz. Adding to the pressure, Dallas Fed President Lorie Logan called for a rate hike, while Fed Vice Chair Philip Jefferson said he would support tighter policy if inflation failed to show near-term improvement. Markets now assign roughly a 50% probability to a September rate increase. Meanwhile, data released during the week showed US consumer and producer prices both declined in June, largely reflecting lower energy costs, while import prices unexpectedly increased.
2026-07-17
Silver Poised for Weekly Drop
Silver held below $56 an ounce on Friday and was on track to lose more than 7% for the week, as escalating tensions in the Middle East pushed oil prices higher, keeping inflationary pressures and interest rate concerns at the forefront. The US launched multiple strikes against Iran this week, while President Donald Trump warned that the US could target the country's infrastructure next week unless diplomatic efforts result in a breakthrough. Iran responded by launching attacks on US bases in neighboring countries, fueling fears of further escalation and a prolonged disruption to energy supplies from the region. Meanwhile, softer-than-expected US inflation data released this week has largely ruled out a July rate increase, even as Fed Chair Kevin Warsh reiterated his commitment to restoring price stability. However, markets remain divided on whether the Fed will hike rates in September, keeping the non-yielding metal under pressure.
2026-07-16
Silver Drops to Eight-Month Low on Rate Hike Fears
Silver plunged more than 3% to below $56 an ounce on Thursday, hitting its lowest level since November 2025, as escalating Middle East tensions drove oil prices higher and strengthened expectations that US interest rates will remain elevated. The latest escalation followed fresh US strikes on Iranian military targets and Tehran's retaliation against US bases in neighboring countries, raising concerns over the security of the Strait of Hormuz and lifting crude oil prices to one-month highs. Higher energy prices have reinforced expectations that the Federal Reserve will keep monetary policy tighter for longer, weighing on precious metals. Traders currently see about a 51% chance of a September rate hike, while softer-than-expected US inflation data has made a July increase unlikely, despite Fed Chair Kevin Warsh's commitment to bringing inflation under control.
2026-07-16