Silver Prices Plunge Over 4% in a Week, Here's the Culprit

Jakarta, CNBC Indonesia - Global silver prices posted a negative weekly performance, weakening amid renewed tensions between the United States and Iran that triggered more hawkish views from the central bank.

Based on Refinitiv data, silver prices on Friday (10/7/2026) were recorded at US$59.62 per ounce, down 0.29% from the previous session and plunging 4.3% for the week.

Silver prices experienced negative performance throughout the week after oil prices soared and inflation concerns intensified. Worries mounted following a statement by US President Donald Trump that a temporary deal to end the conflict with Iran had expired.

Tensions escalated further after Iran claimed to have attacked US military bases in Bahrain and Kuwait in retaliation for Washington’s strikes on several Iranian targets following a tanker incident in the Strait of Hormuz. The situation sent oil prices surging by more than 5%.

The spike in energy prices has the potential to trigger higher inflation and prompt central banks to maintain or even raise interest rates.

Although gold is known as an inflation-hedging asset, the precious metal tends to be less attractive when interest rates are high because it offers no yield.

On the other hand, the minutes of the Federal Reserve meeting on 16-17 June showed that US central bank officials’ concerns about inflation are mounting. Several members even assessed that there were grounds to raise interest rates soon.

Market expectations have also shifted. According to the CME FedWatch Tool, the probability of the Fed raising interest rates in September rose to around 69%, up from 62% the previous day.

“All indicators show the market is worried about inflation, especially after oil prices strengthened again in recent days. This condition will keep central banks, particularly the Federal Reserve, on high alert,” said Bart Melek, Head of Global Commodity Strategy at TD Securities, as quoted by Reuters on Sunday (12/7/2026).