Silver prices fell more than 4% to around $80 per ounce on Friday, pressured by a resurgent US dollar as expectations for interest rate cuts continued to fade. The dollar strengthened as investors moved into safe-haven assets following the United States military’s largest wave of strikes to date against Iranian targets, in response to the continued blockade of the Strait of Hormuz.
Although geopolitical turmoil typically supports demand for precious metals like silver, concerns over slower economic growth and stubborn inflation have undermined its appeal as a store of value, with many investors instead favoring the US currency. Market participants have largely priced out the likelihood of multiple interest rate cuts in 2026, as crude oil’s rise above $100 per barrel threatens to keep consumer prices elevated. This shift in the monetary policy outlook has made non-yielding assets such as silver less attractive relative to the perceived safety and interest-bearing advantages of the greenback.
