Silver Rebounds from 11-Month Lows

Silver held below $54 an ounce on Thursday, holding at near one-year lows after the US Federal Reserve kept interest rates unchanged as widely anticipated but provided limited guidance on its next policy move. Two officials dissented in favor of a 25-basis-point rate hike, strengthening market expectations for a potential increase in December amid persistent energy-driven inflation. Fed Chair Kevin Warsh also indicated that the central bank could reduce the number of interest-rate decisions from eight to six annually, a proposal that could add to policy uncertainty. Investors are now awaiting the US PCE price index, the Fed’s preferred inflation measure, for further insight into the monetary policy outlook. Meanwhile, markets continue to assess renewed diplomatic efforts to prevent further escalation of the Middle East conflict. However, elevated oil prices remain a concern, sustaining inflationary pressures and expectations for higher interest rates, which could weigh on silver.

Silver prices dropped toward $53.5 an ounce on Wednesday, their lowest level since November 2025 following the Federal Reserve’s decision to keep interest rates unchanged. The FOMC voted 10–2 to keep the target range for the federal funds rate at 3.75% to 4.00%, reiterating its commitment to curbing inflation while offering little clarity on the possibility of another hike in December. Meanwhile, oil prices advanced after an attack on a Saudi Arabian refinery raised concerns over potential supply disruptions. Geopolitical tensions also intensified after Axios reported that the US and Israel could launch large-scale strikes against Iran unless a last-minute agreement is reached. According to the CME FedWatch Tool, markets widely anticipate a second Federal Reserve rate hike this year in December.

Silver fell below $54 an ounce on Wednesday after rising for two straight sessions, as investors cautiously awaited the US Federal Reserve’s upcoming policy decision and assessed Israeli election results for potential implications on the Middle East conflict. The Fed is widely expected to keep interest rates unchanged, although traders will look for clues regarding a possible rate hike in December. Meanwhile, the Reserve Bank of New Zealand kept its policy rate steady despite market expectations for another increase, signaling a cautious stance toward further monetary tightening. On the geopolitical front, oil prices remained volatile amid a closely contested Israeli election that could influence the course of the Middle East conflict, while markets grappled with the prospect of fresh US strikes on Iran. Silver has faced sustained pressure this year as regional tensions fueled inflation concerns and strengthened expectations for higher interest rates.