Silver Hits 12-month Low

Silver decreased to 48.52 USD/t.oz, the lowest since November 2025. Over the past 4 weeks, Silver lost 12.56%, and in the last 12 months, it decreased 3.81%.

Silver fell below $50 an ounce, hovering near levels last seen in November 2025, as the USD strengthened and Treasury yields rose amid expectations of more aggressive Federal Reserve tightening. Meanwhile, higher oil prices amid fading hopes for peace in the Middle East added to inflationary concerns. Data this week showed US consumer prices rose 0.4% in October, slightly above forecasts, while producer price inflation eased more than expected to 0.3%, although September's reading was revised higher. Adding to the pressure, silver demand is expected to decline by 5% in 2026 to 1.08 billion troy ounces, according to research by consultancy Metals Focus for the Silver Institute. Markets are pricing in an 89% chance of a 25-basis-point rate hike in December, while the probability of a larger 50-basis-point increase stands at 11%. New York Fed President John Williams further reinforced the hawkish outlook, signaling that additional rate hikes may be needed to bring inflation under control.

Silver prices recovered above $50 per ounce on Friday after declining in the previous session, but remained on track for a weekly loss as a stronger US dollar and rising Treasury yields reflected growing expectations of more aggressive Federal Reserve rate hikes. The shift in market sentiment followed hotter-than-expected US consumer inflation data and hawkish comments from Fed officials, with some policymakers suggesting that a larger 50-basis-point rate increase may be necessary to contain inflation. Markets are currently pricing in around an 85% probability of a 25 bps rate hike in December, as well as a 15% chance of a larger 50 bps increase. Traders are also increasingly anticipating additional rate hikes next year. Meanwhile, gold faced further downward pressure from recovering oil prices after President Donald Trump stated that the US no longer needs a deal with Iran.