Silver Languishes at 11-Month Lows

Silver prices plunged below $50 an ounce for the first time since November 2025, as rising energy costs and persistent inflation concerns strengthened expectations that US interest rates will remain higher for longer. Major central banks, including the Federal Reserve and the European Central Bank, kept rates unchanged this week but warned that the fight against inflation remains unfinished, pointing to renewed price pressures from surging energy costs. Meanwhile, US data released Thursday showed inflation accelerating in September, with core price growth also picking up, reinforcing expectations of a potential Fed rate hike in December. Precious metals also faced pressure from a sharp sell-off in technology stocks, triggered by concerns over rising AI-related spending, which may have prompted forced liquidations and margin calls across markets. At the same time, oil prices advanced amid fears of an escalating conflict in the Middle East, adding to inflationary concerns.

Silver decreased below 50, according to trading on a contract for difference (CFD).

Silver prices declined below $51 an ounce on Friday, sinking to the lowest since November 2025 as persistent inflation and resilient economic growth in the US reinforced expectations of a potential Federal Reserve rate hike later this year. The US PCE price index increased 0.5% month-on-month in September, marking its biggest rise since March, while annual inflation accelerated to 3.6%. Core PCE inflation also climbed to 3.1% year over year. Meanwhile, US GDP expanded at an annualized rate of 3.4% in the third quarter, exceeding expectations of 3.2%, supported by resilient consumer spending and strong AI-related investment. The Federal Reserve kept interest rates unchanged on Wednesday ahead of next week’s US midterm elections, although markets continue to assign roughly a 75% probability of a rate hike in December, according to the CME FedWatch Tool. Silver is on track to decline about 15% in October, potentially recording its second consecutive monthly loss.