Silver prices fall below $60 after recent rally hits peak of $122
The white metal faces intense selling pressure due to rising US interest rate expectations and a strengthening US dollar.
Silver prices have dropped to approximately $60 an ounce from a peak of $122 earlier this year, according to the Economic Times. The metal, which saw a 170 per cent surge in 2025 and a 71 per cent rise in January, is now facing a sharp reversal.
The sell-off is driven by growing expectations of higher US interest rates and rising inflationary pressures caused by higher oil prices amid the Middle East conflict. Traders have increased bets for further Federal Reserve rate hikes later this year.
Rising bond yields have also pressured the metal as investors shift funds into interest-bearing assets. Additionally, a stronger US dollar makes silver more expensive for buyers using other currencies.
Global investment bank HSBC stated that silver prices tumbled to nearly $54 an ounce before stabilising. While the bank remains mildly positive on the metal, it believes the upside is likely to be limited.
HSBC expects the silver market deficit to shrink from 140 million ounces in 2025 to 5 million ounces in 2026. The brokerage anticipates more moderate gains in 2027 rather than a sharp near-term rally.