Silver Hits 10-week Low

Silver prices fell below $58 an ounce on Wednesday, hitting their lowest level since early August, as stronger-than-expected US inflation prompted investors to reassess the Federal Reserve’s interest-rate outlook. US inflation climbed to 3.7% year-on-year in September, above forecasts of 3.6%, driven by higher energy prices. Monthly CPI rose 0.6%, its largest increase in five months, while core inflation also exceeded expectations, reaching 2.6% annually and 0.3% monthly. According to LSEG data, markets now see around a 50% chance of the Fed holding rates steady in October, down from over 78% before the report. Meanwhile, the probability of a rate hike in December has risen to nearly 99%, from 88% previously. Although recent Fed communications had offered little indication of consecutive rate hikes, the stronger-than-expected core CPI reading has brought an October move back into consideration, weighing on non-yielding precious metals such as silver.

Silver decreased to 58.49 USD/t.oz, the lowest since August 2026. Over the past 4 weeks, Silver lost 8.02%, and in the last 12 months, it increased 10.25%.

Silver traded near $59 an ounce on Wednesday after declining for two consecutive sessions, as investors awaited US consumer inflation data for clues on the Federal Reserve’s next policy move. Markets are currently pricing in roughly a 77% probability that the Fed will leave interest rates unchanged this month, while assigning an 88% chance of a rate hike in December. Meanwhile, New York Fed President John Williams indicated that one additional rate hike may be warranted this year, but further monetary tightening is unlikely to be necessary in 2027. Geopolitical tensions also remained in focus as oil prices extended gains amid escalating hostilities between Saudi Arabia and Iran-backed Houthi rebels, raising concerns over Middle East supply disruptions. Separately, the IMF warned of significant risks to global growth and financial stability stemming from a potential end to the AI investment boom, mounting debt levels, and a prolonged conflict in the Middle East.