Silver Prices Still Reeling from January Rout Despite Recent Gains

Silver prices rose 4% over the past week to $58.49 per ounce, but this gain does little to erase the scale of the prior rout. The precious metal remains 51.97% below its all-time high of $121.78 set on January 29.

The recovery narrative is being tested by a packed calendar, including the Federal Reserve's July 28-29 meeting, where markets are pricing in a 64% probability of rates holding steady at 3.50-3.75%. However, a non-trivial 36% chance of a hike lingers due to Middle Eastern tensions and volatile oil prices.

The ongoing quantitative tightening continues to drain system liquidity, raising the stakes for any policy misstep. Geopolitical risk has provided a counterweight, with silver's September futures contract climbing roughly 5% to $58.90, according to the Economic Times.