20.07.2026 11:50
Despite global geopolitical risks, silver failed to find safe-haven support and tumbled over 6% last week. With US-Iran tensions pushing oil above $90, triggering inflation concerns, and the probability of a Fed rate hike by September rising to 60%, silver came under pressure. Starting the new week struggling to hold at $56.80, silver is melting under a strong dollar and rising bond yields.
Silver, recently touted as gold's biggest rival, has failed to find the anticipated safe-haven support despite geopolitical risks in global markets. After experiencing a sharp decline of over 6% last week, silver prices are struggling to hold around the $56.80 level in the new week.
THE MAIN REASON BEHIND THE RECENT DROP: FEAR OF THE FED
Market experts indicate that physical demand for silver remains strong and expectations of a supply deficit persist in the long term. However, the main reason for the sharp price decline is the complete shift in expectations regarding the US Federal Reserve's (Fed) monetary policy. Following recent economic data, market expectations that the Fed may raise interest rates by September have risen to around 60%. This has accelerated outflows from silver, which offers no interest yield.
RISE IN OIL WEIGHS ON SILVER
The reshuffling of cards in the geopolitical arena has also indirectly impacted silver prices. The escalating military tensions between the US and Iran, threatening the Strait of Hormuz—the heart of global energy shipments—have pushed Brent oil prices above $90. The surge in energy costs has rekindled inflation concerns worldwide, while rising bond yields and the dollar's global strength have intensified pressure on silver. Investors flocking to gold and the dollar as safe havens have dragged silver down.