Quick overview
- Silver is currently trading between $57 and $60 per ounce, supported by its 250-session moving average.
- The Federal Reserve’s strict anti-inflation policy and elevated interest rates have negatively impacted silver prices.
- Geopolitical developments and normalized oil prices have reduced the demand for silver as a safe haven asset.
- The Silver Institute reports a significant global silver supply deficit, with a shortfall of 46 to 67 million ounces expected this year.
Silver is trading in the $57 to $60 per ounce range, finding strong technical support around its 250-session moving average. A collapse in underlying demand didn’t drive the roughly 50% drop from the January peak, but rather a perfect storm of macroeconomic shifts:
Under the leadership of newly appointed Fed Chair Kevin Warsh, the Federal Reserve has taken a strict anti-inflation stance, keeping interest rates elevated at 3.50%–3.75%. This has pushed the US Dollar Index (DXY) to near one-year highs, creating a heavy drag on non-yielding assets like silver.
The signing of a US–Iran Memorandum of Understanding significantly reduced the geopolitical premium. Oil prices normalized back to pre-conflict levels (near $59–$62), which greatly eased immediate inflation anxieties that had previously driven investors into precious metals as defensive safe havens.
The sudden macro shifts triggered massive profit-taking, margin hikes on exchanges like the CME, and programmatic short-selling by commodity trading advisors, overextending the downward momentum.
The Silver Institute’s 2026 World Silver Survey confirms that 2026 marks the sixth consecutive annual global silver supply deficit. The structural gap is widening, with an estimated shortfall of 46 million to 67 million ounces this year alone. miners cannot easily ramp up production just because silver prices change, because roughly 70% of silver is mined as a secondary byproduct of copper, zinc, and lead operations,
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 15 years of working experience in investment trading.
