Oil-Driven Rate Fears vs Structural Deficit: Silver Market at a Crossroads

Silver prices recovered to $59.42 per ounce on Monday, up 1.15% from the previous session.

This rebound masks a market struggling with opposing forces: rising oil prices driven by tensions in the Middle East and a deepening structural deficit in silver supply.

The precious metal had fallen below $59 due to escalating tensions between the US and Iran, which pushed Brent crude above $100 per barrel for the first time since May.

Rising oil prices stoke inflation fears, making it more likely that the Federal Reserve will keep interest rates elevated, further reducing silver's appeal as a store of value.