Silver Price Rises Amid Yen Intervention, But Long-Term Picture Remains Bleak

Silver's price climbed 2.36 percent to $59.27 per ounce on Friday, driven by what appears to be another round of Japanese intervention in currency markets. The yen's weakness against the dollar made dollar-denominated silver more affordable for international buyers.

However, this bounce masks a larger decline: silver remains down 16.48 percent since January 1 and is still over 50 percent below its record high of $121.78 reached in late January.

The US Federal Reserve's decision to leave interest rates unchanged at 3.50 to 3.75 percent on Friday was not unanimous, with three members pushing for a rate hike due to concerns about inflation. This hawkish tilt is weighing on precious metals, as a stronger dollar and rising bond yields make interest-bearing assets more attractive.

The supply side of the market also suggests a long-term narrative: the Silver Institute reports that the market has been in an uninterrupted deficit since 2021, with 2026 expected to mark a sixth consecutive year of shortfall at roughly 46.3 million ounces.