Silver drops to eight-month low

Renewed regional tensions between the US and Iran have upended commodity markets. Rising oil prices, driven by developments in the Strait of Hormuz, have brought global inflation and interest rate expectations back to the forefront, triggering a sharp wave of selling in the silver market.

The rapid rise in oil prices has led investors to focus on the possibility that inflation could accelerate and that central banks might delay interest rate cuts. These developments have put pressure on precious metals, with the weakening demand for silver being particularly notable.

Under increasing selling pressure, the price of an ounce of silver fell by 3.6 percent during the day, dropping below the 55.50 dollar level. This level was recorded as the lowest price since November 2025.

Analysts state that high energy costs create upward risks for inflation and note that the market has begun to revise its monetary policy expectations. The expectation that interest rates may rise again has reduced interest in precious metals like silver, as they do not provide interest income. With the decline in safe-haven buying, investors turning to profit-taking has caused further drops in prices.

News Source: 12punto