Silver tumbled 5% to $69.50 per ounce on Friday, capping a brutal 14% decline for the week, as escalating conflict in the Middle East drove energy prices higher and shattered expectations for near-term monetary easing. The sell-off intensified following reports of expanded US military deployments to the region, prompting traders to assign a 50% probability to a Federal Reserve rate hike by October and to price in at least three additional increases from both the European Central Bank and the Bank of England in 2026.
The metal has now fallen for three consecutive weeks since the US-Israel strikes on Iran, pressured by rising US Treasury yields, a strengthening dollar, and investor liquidations to meet margin calls and cover losses elsewhere. Earlier this week, major central banks—including the Fed, ECB, BoE, and Bank of Japan—left interest rates unchanged but signaled they remain prepared to tighten policy further if inflationary pressures persist.
