Last Updated on 22/10/2026
Silver prices retreat below $57.00 as drone attacks targeting energy infrastructure in the Middle East and Ukraine push oil prices higher, intensifying inflation concerns. Ongoing regional tensions and Iran’s demands for US sanctions relief further increase market uncertainty. Meanwhile, traders expect interest rates to remain unchanged next week, while growing expectations of a potential rate hike in December weigh on non-yielding silver.
Silver prices (XAG/USD) extend their losses for a second consecutive session, trading near $56.80 per troy ounce during Thursday’s Asian session. Rising oil prices are intensifying inflation concerns and strengthening expectations of a potential Federal Reserve rate hike, putting additional pressure on the non-yielding precious metal.
Crude oil prices climbed following a drone attack on Saudi Aramco’s Shaybah oil field that caused two fatalities, heightening geopolitical tensions and concerns over energy supply disruptions. Meanwhile, Ukraine launched large-scale drone strikes against key Russian oil infrastructure this week, potentially hindering Moscow’s plans to expand diesel exports under a recent agreement between US President Donald Trump and Russian President Vladimir Putin.
Geopolitical uncertainty remains elevated as Iranian Foreign Minister Abbas Araghchi called on Washington to lift its naval blockade and demonstrate a genuine commitment to diplomacy. Tehran has indicated its willingness to resume negotiations if the United States provides credible evidence of efforts toward a just and lasting resolution to the conflict.
Rabobank analysts warn that intensifying geopolitical rivalries and shifting supply chains are reinforcing the strategic importance of energy security. With global trade routes and alliances undergoing significant changes, energy markets remain vulnerable to sudden supply disruptions, increasing volatility across oil-related assets.
Meanwhile, investors are closely monitoring the Federal Reserve’s monetary policy outlook ahead of next week’s meeting. Uncertainty persists after Fed Chair Kevin Warsh declined to provide clear guidance on the timing of potential rate increases. According to the CME FedWatch Tool, markets currently assign an 84% probability to the Fed keeping interest rates unchanged next week, while pricing in a 90% chance of a rate hike in December. Expectations of tighter monetary policy could continue to weigh on silver prices by increasing the opportunity cost of holding non-yielding assets.
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