Silver Prices Plummet Below $60 Amid Rising Rate Expectations and Geopolitical Tensions
Silver prices have declined sharply after touching $60.94 per ounce, breaking its short-term uptrend and leaving traders to weigh competing forces of escalating Middle East tensions and a hawkish repricing of Federal Reserve policy.
The white metal slid to $57.62 an ounce on July 23, with the Relative Strength Index dipping below the neutral 50 threshold, signaling fading buying momentum.
The pullback comes as the yield on 10-year US Treasuries surged to 4.703%, its highest closing level since early 2025, driven by a dramatic shift in rate expectations: fed funds futures now price in an 83% probability of a September rate hike.
Higher interest rates increase the opportunity cost of holding non-yielding assets like silver and gold, with oil prices also contributing to inflation fears after a geopolitical flashpoint in the Red Sea sent Brent crude above $100 a barrel for the first time since May.