Silver Rebounds at Weekend, Market Awaits Fed Rate Direction
Silver closed this week’s trading higher after having come under sharp pressure the previous day.
According to Refinitiv, the spot silver price (XAG=) stood at US$58.165 per troy ounce on Friday (24/7/2026), up 0.85% compared with Thursday’s close (23/7/2026) at US$57.675 per troy ounce.
Over the week, silver remained in positive territory. Compared with the previous Friday’s close of US$55.90 per troy ounce, the price has risen by around 4%. The gain even pushed silver above US$60 per troy ounce in mid-week before it corrected once again.
Price movement throughout the week was highly volatile. On Monday (20/7), the price rose to US$56.415 per troy ounce from US$55.90 at the end of the previous week. The rally continued into Tuesday (21/7) at US$58.785, then touched US$59.705 on Wednesday (22/7). Selling pressure emerged on Thursday, sending the price plunging to US$57.675 before it recovered in Friday’s trading.
The market’s direction over the week was influenced by two main sentiments: developments in the Middle East conflict and expectations over United States monetary policy.
Tensions in the Gulf region briefly pushed crude oil prices sharply higher. The risk of energy supply disruption raised concerns that global inflation could persist for longer. This also lifted US government bond yields, as market participants expected the central bank to maintain its tight monetary policy for longer.
The rise in yields put pressure on non-yielding assets such as gold and silver. This relationship was clearly visible in Thursday’s trading, when silver lost more than 3% in a single day after the market repriced the likelihood of higher interest rates persisting for longer.
However, that pressure eased on Friday. Brent crude fell more than 4% after having closed above US$100 per barrel the previous day. The decline in energy prices slightly reduced inflation concerns, allowing silver to erase part of its earlier weakness. Reuters also noted that buying at lower price levels helped support the precious metals market ahead of the US central bank’s decision.
Investor focus now turns to the Federal Reserve meeting next week. Market consensus expects interest rates to be held steady, although market participants are still assigning roughly an 80% probability to a rate rise in September. In Europe, the European Central Bank (ECB) held rates steady as expected, while keeping the door open to further tightening at its next meeting.
From a technical standpoint, the US$60 per troy ounce level remains a crucial area. Throughout this year, prices have failed several times to hold above that level. As long as silver trades below US$60, the market will remain highly sensitive to changes in rate expectations and movements in US bond yields. Conversely, if it can break through and hold above that level, room for further gains could open up once again.