The white metal is caught in a perfect storm. After plumbing a fresh 2025 low of $58.75 on Wednesday, silver accelerated its slide on Thursday morning to trade around $57.50 before dipping toward $56.50. The next catalyst arrives at 14:30 CET, when the US releases the personal consumption expenditures (PCE) price index – the Federal Reserve’s preferred inflation gauge.
Dollar strength and rate-hike expectations batter unyielding asset
The US Dollar Index surged past 101.60, its highest level since May 2025, making dollar-denominated bullion more expensive for overseas buyers. Behind the rally sits Fed chair Kevin Warsh, whose unyielding hawkish stance has lifted the currency. According to the CME FedWatch Tool, markets now price in an 85.5% probability of at least one rate hike by December 2026. For an asset that pays no interest, that calculus is toxic.
Silver’s structural deficit – estimated at 46 million ounces – has been entirely overshadowed by macro headwinds. Physical buyers have stepped in locally, CME data shows, but that hasn’t stemmed the institutional selling wave washing over international markets.
Geopolitical risk premium evaporates after US-Iran pact
The sharpest fundamental shift came from the “Islamabad Memorandum of Understanding” signed on June 19. This interim peace accord between the US and Iran has defused tensions around the Strait of Hormuz, slashing the geopolitical risk premium that had been baked into commodity prices. Safe-haven demand for silver collapsed as energy costs fell and portfolio managers rotated out of precious metals.
Should investors sell immediately? Or is it worth buying Silber Preis?
Silver’s dual industrial role only compounds the misery. It is a critical component in AI infrastructure, solar panels, and electronics – making it acutely sensitive to the recent rout in semiconductor stocks. Institutional investors, facing margin calls in their equity portfolios, have been liquidating gold and silver positions in a coordinated manner, pushing the metal below the psychologically important $60 threshold.
PCE data holds the key to silver’s next support test
The market consensus for the headline PCE deflator stands at 4.1% year-over-year. Core PCE, which strips out volatile food and energy, is expected at 3.4%. A hotter-than-forecast reading would reinforce expectations of further tightening and likely send silver sliding toward its next support at $56.50. A break below that opens the door to $55.61, the level flagged by technicians from the primary source, and potentially $55.00.
On the upside, silver has established two notable resistance levels. Near-term resistance sits at $60.48 – a breach would brighten the chart picture in the short run. Further up, the $61.40 area acted as a ceiling this week, sending prices back down after a brief test. Only a decisive close above that zone would suggest the downtrend has stalled.
For now, the metal remains pinned between a hawkish Fed, a strengthening dollar, and fading safe-haven demand – with the PCE print likely to determine whether silver stabilizes or extends its year-to-date losses.
Ad
Silber Preis Stock: Buy or Sell?! New Silber Preis Analysis from June 25 delivers the answer:
The latest Silber Preis figures speak for themselves: Urgent action needed for Silber Preis investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from June 25.
Silber Preis: Buy or sell? Read more here...
