World Not Yet 'Healed', Silver Prices Move Erratically

The silver market’s movements over the past week unfolded in two contrasting acts. Prices initially fell at the start of the week before reversing upwards towards the close. According to Refinitiv, silver closed on Friday (30/4/2026) at US$73.735 per ounce. This level was up from Wednesday’s close at US$71.482, which had been the lowest point in a month. However, compared to the start of the week on Monday (27/4/2026) at US$75.495, silver remained lower, with a weekly correction of around 2.3%. The main pressure came from the energy market. Tensions in the Middle East have not eased, while the vital Strait of Hormuz remains disrupted. Around 20% of global oil flows are stalled, raising inflation expectations. Investors have begun shifting positions, anticipating interest rates to remain high for longer. When inflation is expected to rise, central banks tend to hold or even raise interest rates. Non-yielding instruments like silver become less attractive. Funds are flowing to interest-bearing assets, pressuring precious metal prices. Oil prices fell more than 3% at the end of the week after signals of a new peace proposal from Iran emerged. At the same time, the US dollar weakened to its lowest level in two months. The dollar’s weakening makes silver relatively cheaper for global buyers, driving a short-term rebound. An additional factor comes from industrial demand. The surge in artificial intelligence infrastructure spending in the United States is maintaining prospects for silver consumption. Four tech giants are pouring up to US$715 billion into capital expenditures this year, nearly double the previous year’s amount. Silver remains an important component in the electronics and semiconductor ecosystem. However, since the conflict heated up, silver prices have fallen around 18%. The market sees inflation risks as more dominant than safe-haven drivers. Bonds are regaining interest, with yields rising before easing slightly as oil prices corrected. As long as oil supplies have not recovered and central banks have not signalled easing, silver will move under pressure. The rebound seen so far is technical in nature and has not changed the main market direction.