Silver fell below $82 an ounce on Friday, extending its decline for a second straight session as broad-based weakness in the metals complex deepened amid growing concerns about US inflation and potential interest rate hikes. Data released earlier in the week showed that US wholesale inflation in April rose at its fastest pace since 2022, while consumer prices posted their largest increase since 2023. These inflationary pressures have been driven largely by the protracted Iran conflict and the continued closure of the Strait of Hormuz, which have severely disrupted global energy flows. As a result, markets have now completely priced out the likelihood of a Federal Reserve rate cut this year, and some participants are even positioning for a possible rate increase by December.
Even with the latest pullback, silver had rallied earlier in the week and outperformed other precious metals, buoyed by expectations of stronger industrial demand in sectors such as electronics and solar energy, as well as other applications that capitalize on the metal’s exceptional electrical conductivity.
