Silver Prices Plummet on External Factors, Investment Banks See Bright Future
Silver prices saw significant fluctuations at the end of July, with a sharp 3.46% sell-off on July 23 followed by stabilization near $57.50 the next day.
The metal's slide to $57.64 and a brief intraday dip to $57.35 were triggered by external factors: a seven percent surge in Brent crude above $100 a barrel, a jump in 10-year US Treasury yields to roughly 4.7%, and a dollar index that climbed above 101.40.
The oil price increase was driven by Houthi attacks on two Saudi tankers in the Red Sea, while the US continued its 13th consecutive night of strikes on Iran, with President Trump threatening 'severe military punishment'.
This geopolitical turmoil affects precious metals in complex ways: it can drive safe-haven demand but also fuels inflation fears and bolsters expectations for higher interest rates.