Silver Stuck Below $60 Amid Geopolitical Chaos
Silver's price has been stuck below $60 per ounce despite escalating conflict in the Middle East, disrupted shipping lanes, and a weakening US labor market. Typically, such geopolitical chaos would send investors scrambling for safe-havens like precious metals. However, major banks are now lowering their expectations for silver's price.
UBS has reduced its entry point for buying silver to $48-$50 per ounce from $55, reflecting the shift in sentiment since January's record peak. Bank of America also expressed skepticism about the recent bounce in precious metals, characterizing it as a technical reaction rather than a sustainable recovery.
The Middle East crisis is proving to be a double-edged sword for silver. While conflicts typically boost demand for gold and silver, the current escalation is strengthening the forces that suppress them. Higher oil prices feed inflation expectations, which in turn reinforce the view that the Federal Reserve will maintain its tightening bias.
The Fed's decision next week will likely determine whether supply scarcity or rising rates wins out. The World Silver Survey 2026 projects a sixth consecutive annual supply deficit, making silver acutely sensitive to demand shocks.