Commodities Silver Goes Sharply Negative
Silver prices retreated over 4% toward $80 per ounce on Friday as a resurgent US dollar amid fading expectations for interest rate cuts overshadowed the traditional appeal of precious metals. The dollar strengthened as investors sought safety after the United States military announced its largest wave of strikes yet against Iranian targets following the continued blockade of the Strait of Hormuz. While geopolitical instability typically drives demand for silver the prospect of slower economic growth and persistent inflation has limited its role as a store of value as investors favor the US dollar. Market participants have effectively removed expectations for multiple interest rate cuts in 2026 as crude oil prices climbing above $100 per barrel threaten to keep consumer costs elevated. This shift in monetary outlook makes non-interest bearing assets like silver less attractive compared to the safety of the greenback.
