Silver Rises as Lower Oil Prices Ease Inflation Concerns

Silver climbed to around $66 an ounce on Friday, its highest level in more than a week, as falling oil prices eased concerns over persistent inflationary pressures. Gains were limited by a stronger dollar, which remained supported after the US Federal Reserve raised rates by 25 bps on Wednesday and signaled further increases in the coming months. Markets are now pricing in a nearly 60% chance of another rate hike next month. The Bank of Japan also raised rates to a 31-year high and signaled that further tightening remains possible. Meanwhile, Brent crude fell for a third consecutive session, as easing concerns over Saudi supply disruptions outweighed fears of a broader escalation of the Middle East conflict.

Silver climbed toward $67 an ounce on Friday, extending gains from the previous session, supported by falling oil prices that eased inflation concerns and helped push bond yields lower. Oil prices declined for a third consecutive session as Saudi Arabia worked to restore flows through its East-West pipeline, while President Donald Trump is set to meet with Gulf leaders next week. Treasury yields also pulled back from multi-year highs, with the US 10-year yield falling to around 4.93% after briefly exceeding 5% earlier this week. Meanwhile, investors continued to assess the outlook for Federal Reserve monetary policy following its first rate hike in three years. The US central bank signaled that additional tightening could be needed to contain inflationary pressures, with markets now pricing in roughly a 53% probability of a move in October.

Silver climbed 3% to around $65.5 an ounce on Thursday as investors reassessed their positions following the US Federal Reserve’s first rate hike in three years. The dollar retreated from a seven-week high reached after US policymakers raised rates and signalled further hikes in the coming months, with Chief Kevin Warsh joining the unanimous decision and highlighting concerns that inflation remains elevated. Higher interest rates typically weigh on precious metals by increasing the appeal of interest-bearing assets. Elsewhere, the Bank of England kept interest rates unchanged on Thursday, while the Bank of Japan is widely expected to raise rates to a 31-year high on Friday. Oil prices extended their decline as concerns over supply disruptions eased, while US President Trump said he hoped an end to the war with Iran was near.