Silver prices fell to approximately $57 per ounce (oz) today, extending a sharp downward trend that began after mid-June, following a prior period in which the market had repeatedly stabilized around a perceived support floor near $70/oz.
That price range held for a while and kept trading relatively stable, but once it broke, the market moved clearly lower. Selling picked up after that, leading to a steady drop in prices down toward $60/oz.
“The price drop was mainly due to renewed uncertainty with hawkish U.S. Federal Reserve’s decision continuing to push real yields and the US dollar higher, which does not favor precious metals,” Michael DiRienzo, president and chief executive officer of the Silver Institute, told pv magazine. ,
“Additionally, the Fed delivered a hawkish surprise by projecting a rate hike this year,” DiRienzo added. “There’s a 34% chance of a hike in July and a 68% probability of a move in September. Fundamentals of the silver market are strong, however, with a pickup in retail silver investment in certain regions of the world and the continuation of the 6th year of a structural market deficit.”
The expert did not mention the de-escalation of hostilities between Iran and the United States as a reason for the decline in silver prices.
“The interesting development in recent days is that, despite the apparent ceasefire agreement, which broadly seems to be holding, investors are now increasingly concerned about the inflationary outlook in the US,” Philip Newman, managing director of independent research consultancy Metals Focus, told pv magazine. “In other words, while the Strait may be about to open, it will of course be quite some time before tankers can pass through en masse, and so investors are wary of an oil shock, given the very low level of oil inventories in key locations. As such, expectations have grown concerning potential US interest rate hikes before end-2026.”
The silver rally began in mid-October 2025 and accelerated toward year-end, with prices rising quickly through November and December to around $70–75/oz, marking one of the sharpest late-year increases in decades.
In early January 2026, the surge intensified further, pushing silver past previous highs to an all-time peak of about $120/oz, driven by speculative momentum, tight supply, and strong investment demand. Shortly after reaching this record, the market turned more volatile but began to stabilize compared to January’s spike.
The photovoltaic industry is expected to use less silver in 2026, according to recent analysis published by the Silver Institute.
Silver paste currenly accounts for up to 20% of total solar cell costs, creating a difficult environment for manufacturers already facing overcapacity, falling module prices and squeezed margins. Companies are exploring alternative metallization technologies and other ways to reduce silver consumption.
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