Silver Hovers Near 8-Month Lows

Silver rose to around $57 an ounce on Monday, recovering from an eight-month low as investors assessed the US-Iran conflict and its implications for inflation and interest rates. US forces continued striking Iranian targets, while concerns over shipping through the Strait of Hormuz intensified after Tehran reported that two oil tankers had exploded and been immobilized. Although oil prices eased after Iran signaled it remained open to negotiations with the US, Brent crude stayed near a one-month high, keeping inflation concerns elevated and reinforcing expectations that US interest rates will remain higher for longer. Meanwhile, Cleveland Fed President Beth Hammack joined a growing chorus of policymakers suggesting further rate hikes may be needed to curb persistent inflation. Markets are now pricing an 80% chance of a December Fed rate hike, up from 73% a week ago.

Silver rose above $56 an ounce on Monday, but stayed close to its lowest levels in eight months as escalating attacks between the US and Iran drove oil prices higher, stoking concerns over inflation and the prospect of interest rate hikes. The US military said it carried out fresh airstrikes against Iran on Sunday following the deaths of three American service members, while Tehran declared that its ceasefire with the US had effectively collapsed and said it intercepted four vessels transiting the Strait of Hormuz over the weekend. Oil prices have now surged about 30% from their July lows, raising the risk that central banks may tighten monetary policy to contain inflation. Meanwhile, Cleveland Fed President Beth Hammack on Friday joined a growing number of Fed officials warning about persistent inflation. Markets are now pricing in about a 53% chance of a Fed rate hike in September, up from 47% a day earlier.

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.