Silver Prices Plummet on Fed Hawkishness
Silver prices took a sharp hit on Friday, closing at $57.90 per ounce after shedding 3.54% in a single day.
The downturn was triggered by the Federal Reserve's hawkish pivot, led by Chairman Kevin Warsh, which has shifted market expectations from imminent rate cuts to another potential hike in September.
A strengthening US dollar and rising 10-year Treasury yields have also contributed to silver's decline, making it less appealing compared to other assets.
The technical picture is equally bearish, with silver trading 11.32% below its 50-day moving average of $65.29 and a Relative Strength Index (RSI) of 42, indicating waning buying momentum.
However, the fundamental picture remains tight, with the Silver Institute projecting a global supply deficit of approximately 46 million ounces for 2026, the sixth consecutive year that demand has outstripped production.
Hindustan Zinc's plans to nearly double its silver production by 2029 could alleviate some of this pressure, but ongoing supply risks in Peru and shifting industrial demand patterns may continue to impact silver prices.