Silver prices have continued their downward spiral, falling below the $55 per ounce mark as of October 29, 2026. This decline marks a fresh yearly low, with the precious metal down about 26% year to date. The primary driver behind this drop is the Federal Reserve's rate hike fears, as futures markets priced an 83% chance of another hike in December following the FOMC's decision to hold rates at 3.75% to 4% on October 28. Dissenters Lisa Cook and Beth Hammack had pushed for a quarter-point hike, citing strong economic data, including a 3.4% annualized GDP growth in the third quarter and a 3.6% year-over-year PCE inflation rate.
Oil prices have also played a significant role in silver's decline, with Brent crude settling near $114.88 per barrel and WTI near $102. Geopolitical tensions, particularly the ongoing Houthi attacks on Saudi energy facilities and the potential for U.S. military action against Iran, have kept oil prices elevated. This, in turn, has maintained high inflation and rate hike expectations, further pressuring silver.
Technically, silver has broken below the 55 area, a key support level, putting buyers on the defensive. The market is now at a decision point, with three possible scenarios: a neutral rebound to the 62.1 area if buyers reclaim the 55 level, a bearish slide to the 47 area if buyers fail to respond, or a bullish recovery back to the 70 area if sellers do not respond at the 62.1 area. The outcome will depend on upcoming economic data, particularly the November 6 jobs report and the November 10 CPI report.
Analysts at Sucden Financial expect industrial silver fabrication to fall 3% in 2026 and see silver testing the $50 to $53 range before December. The gold to silver ratio has risen to 76.41, indicating that silver is lagging behind gold. With the market at a critical juncture, all eyes are on whether buyers will defend the 55 area or if the slide will continue toward the 47 area.