Silver Rebounds at Weekend, Market Awaits Fed Rate Direction

Silver prices closed the trading week with a gain after experiencing 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 to Thursday’s (23/7/2026) close of US$57.675 per troy ounce. Over the week, silver’s movement remained in positive territory. Compared to the previous Friday’s close of US$55.90 per troy ounce, the price had risen by around 4%. This increase briefly pushed silver past US$60 per troy ounce mid-week before it corrected again. Price movements throughout the week were 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, causing the price to slump to US$57.675 before recovering in Friday’s trading. The market’s direction during the week was influenced by two main sentiments: developments in the Middle East conflict and expectations for United States monetary policy. Tensions in the Gulf region briefly pushed crude oil prices soaring. The risk of energy supply disruptions heightened concerns that global inflation would persist longer. This condition also lifted US government bond yields as market participants anticipated the central bank would maintain tight monetary policy for an extended period. The rise in yields put pressure on non-interest-bearing 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 recalculated the probability of high interest rates persisting longer. However, that pressure eased on Friday. Brent crude oil prices fell more than 4% after closing above US$100 per barrel the previous day. The decline in energy prices slightly reduced inflation worries, allowing silver to erase some of its earlier weakness. Reuters also noted that bargain hunting at lower price levels helped support the precious metals market ahead of the US central bank’s decision. Investor focus is now turning to the Federal Reserve meeting next week. Market consensus expects interest rates to be held steady, although market participants still see an approximately 80% chance of a rate hike in September. In Europe, the European Central Bank (ECB) held rates as expected but kept the door open for further tightening at its next meeting. From a technical perspective, the US$60 per troy ounce level remains a key area. Throughout this year, the price has failed several times to hold above that level. As long as silver remains below US$60, the market will remain highly sensitive to changes in interest rate expectations and movements in US bond yields. Conversely, if it manages to break through and hold above that level, the potential for further gains could reopen.