Silver Falls for Second Straight Session
Silver dropped below $82 an ounce on Friday, marking a second consecutive session of declines as weakness across the broader metals complex intensified amid rising concerns over US inflation and potential rate hikes. Data released earlier this week showed US wholesale inflation accelerated at its fastest pace since 2022 in April, while consumer prices recorded their sharpest increase since 2023. Inflation pressures have been fueled largely by the prolonged Iran war and the ongoing closure of the Strait of Hormuz, which has significantly disrupted global energy flows. Markets have now fully priced out the possibility of a Fed rate cut this year, while some are betting on a potential rate hike by December. Despite the recent pullback, silver had rallied earlier in the week and outperformed other precious metals, supported by stronger industrial demand expectations tied to electronics, solar panels, and other applications that rely on the metal’s high electrical conductivity.