Silver Prices Plummet as Fed's Hawkish Stance Trumps Supply Deficits

Silver prices fell to $57.90 per ounce on Friday, losing 3.54 percent in one day as the Federal Reserve's increasingly hawkish stance weighed on precious metals markets.

The decline came despite a projected sixth consecutive year of global supply deficits in 2026, with the shortfall expected to reach approximately 46.3 million ounces, according to the Silver Institute.

While silver's industrial applications provide a demand floor, the Fed's pivot under Chairman Kevin Warsh has temporarily overwhelmed those fundamentals, with higher bond yields being a direct headwind for non-yielding assets like silver.