Silver Prices Lose Their Shine for Five Consecutive Weeks
Global silver prices remain under sustained pressure, marking a fifth consecutive week of declines. According to Refinitiv data, spot silver traded at US$67.55 per troy ounce on Thursday (12/6/2026), virtually unchanged from the previous day but significantly below the levels above US$74 per troy ounce seen earlier this month. The weekly drop of 8.6% from US$73.87 on 4 June extends a prolonged downturn from the metal’s all-time high of US$121.64 per troy ounce recorded in January.
The primary headwind for silver is a shift in market expectations regarding the trajectory of global interest rates. The ongoing conflict in Iran since February has kept energy prices elevated, adding to inflationary pressures across many economies. This has prompted investors to scale back expectations for rate cuts and instead factor in the possibility of further monetary tightening. The European Central Bank (ECB) raised interest rates this week for the first time since 2023 and revised its inflation projections upwards for 2026 and 2027. In the United States, annual producer price inflation accelerated to 6.5% in May, reinforcing the view that price pressures have not yet abated.
The changing rate outlook has made market participants more cautious ahead of the Federal Reserve’s upcoming meeting on 16-17 June. After months of discussing potential easing, the prospect of further rate hikes has re-entered investor calculations. A high interest rate environment typically dampens demand for precious metals, as fixed-income instruments become comparatively more attractive.
Geopolitical developments have also contributed to silver’s decline. US President Donald Trump stated that a peace agreement with Iran could be reached in the near future. While Tehran has yet to make a final decision, the prospect of reduced conflict has diminished some safe-haven demand in the market. Silver occupies a unique position, serving both as a safe-haven asset and an industrial raw material, but current market focus remains squarely on interest rates and inflation rather than industrial consumption prospects. With limited inflows into precious metals, silver’s recovery potential appears constrained in the near term, though market volatility is expected to remain elevated.