Silver Loses Its Shine as Investors Turn Back to the Dollar

On Wednesday, June 24, silver continued to fall sharply on global markets. During trading, the price dropped below the psychologically important level of $60 per troy ounce for the first time since last December. At its lowest point, silver reached $59.34 before recovering slightly above $59.5. Even so, the metal remained down by more than 4% from the previous session’s close.

Analysts say the main reason is growing concern that the U.S. Federal Reserve may keep interest rates high for longer or even return to rate hikes. At its June 17 meeting, the Fed left its key rate unchanged at 3.5%–3.75%, but markets interpreted the regulator’s tone as firm.

High interest rates are negative for silver and gold because precious metals do not generate income. When bond yields rise, many investors prefer dollar assets. A stronger U.S. dollar also puts pressure on commodities, making them more expensive for buyers outside the United States.

Silver is influenced not only by investment demand but also by industry, including electronics, solar panels, medical equipment and automotive technologies. Concerns about slower global growth are therefore adding pressure.

Despite the decline, silver remains highly volatile. Markets will now watch U.S. inflation data and the Fed’s next signals closely.

Anna Prikhodko