FX.co ★ Silver Trades Near Four-Week Low

Silver declined to around $80 per ounce on Tuesday, hovering near a one-month low, as markets continued to weigh the inflationary risks stemming from the Middle East conflict and their potential implications for monetary policy. Tensions among the US, Israel, and Iran have now entered a third week, with Iran intensifying attacks on energy infrastructure across the region. This instability has bolstered demand for safe-haven assets but has also kept energy prices elevated, fueling concerns that a prolonged price spike could heighten inflationary pressures and entrench central banks’ hawkish stance. Investors broadly expect the Federal Reserve to leave interest rates unchanged for a second consecutive meeting, while other major central banks—including the ECB, BoE, and BoJ—are likewise projected to maintain their existing policy settings. Despite the recent pullback, silver is still up about 12% year-to-date, underpinned in part by a forecast supply deficit in 2026 and strong industrial demand, particularly from the electronics sector.