Silver Price Plunges Nearly 9% in a Week as High Interest Rates Pose Threat
Jakarta, CNBC Indonesia - The price of silver (XAG/USD) recorded a daily gain at the close of trading on Friday (26/6/2026), yet still posted a significant weekly correction. The precious metal is now trading below the psychological level of US$60.00 per troy ounce.
Based on trading data, the XAG/USD pair closed at US$59.16 per troy ounce on Friday, marking an increase of approximately 2.23% compared to Thursday’s close of US$57.86.
Despite the daily gain, silver accumulated a weekly decline of 8.84% from the previous week’s closing position of US$64.90 per troy ounce. Throughout the week, silver touched its lowest point on Wednesday (24/6/2026) at US$57.43.
Beyond the daily price dynamics, the main pressure on silver prices stems from global macroeconomic conditions. The ‘higher-for-longer’ interest rate scenario is a negative sentiment weighing on the white metal’s trajectory.
Several major global central banks have indicated a stance of maintaining or even potentially raising their interest rates to control inflation. A high interest rate environment historically exerts downward pressure on non-yielding assets like silver, as market participants tend to shift their capital towards fixed-income investment instruments.
The precious metal is currently undergoing a significant trend reversal in June. After briefly reaching its highest level, silver began to lose its appeal due to a combination of global sentiments.
An additional factor now commanding the market’s primary attention is the resurgence of geopolitical tensions. The latest escalation of tensions involving the United States (US) and Iran is expected to have a ripple effect on commodity markets. This dynamic is triggering portfolio position adjustments by market players, which is projected to further depress silver prices in the near term.
Technically, price movement indicators show that selling pressure remains in control. Although a technical buying action occurred at the end of the week, lifting the price away from the oversold area, the main trend for XAG/USD remains a downtrend.
Given the current fundamental and technical conditions, the trajectory indicates further weakness. The first support level to watch is at this week’s low of US$57.43. If this level is breached, the price could potentially continue its correction towards the US$55.00 range. Conversely, to regain upward momentum, buying pressure must be able to push and maintain the silver price stable above the psychological level of US$60.00, with the next recovery target at the early-week price range of US$65.17.