en.Wedoany.com Reported - Silver prices have continued to decline since mid-June, now falling to approximately $57 per ounce. The market had previously found support near $70 per ounce on multiple occasions and traded relatively steadily, but after that support level was breached, selling pressure increased, driving prices further down to around $60 per ounce.
Michael DiRienzo, President and CEO of the Silver Institute, told pv magazine that the price decline is primarily due to new uncertainties, with the Federal Reserve's restrictive decisions continuing to push up real yields and the U.S. dollar, putting pressure on precious metals. DiRienzo added that the Fed delivered a restrictive surprise by projecting rate hikes this year, with a 34% probability of a rate hike in July and a 68% probability of action in September. However, the fundamental outlook for silver remains strong, with increased retail silver investment in some parts of the world and structural market deficits entering their sixth year. The expert did not attribute the decline in silver prices to the de-escalation of hostilities between Iran and the United States.
Philip Newman, Managing Director of independent research consultancy Metals Focus, told pv magazine that although a ceasefire agreement appears to have been reached and largely holds, investors are increasingly concerned about the U.S. inflation outlook. He noted that while the strait may be on the verge of reopening, it will still take considerable time for a large number of oil tankers to pass through. Given extremely low oil inventories at key locations, investors remain cautious about potential oil shocks. As a result, expectations of a possible U.S. rate hike before the end of 2026 have risen.
The silver rally began in mid-October 2025 and accelerated toward the end of the year, with prices climbing to around $70–$75 per ounce in November and December, marking one of the strongest year-end gains in decades. In early January 2026, driven by speculative momentum, supply shortages, and robust investment demand, silver broke through its previous highs, reaching an all-time peak of approximately $120 per ounce. Market volatility increased after this record was set, but prices began to stabilize compared to the January peak.
According to a recent analysis by the Silver Institute, the photovoltaic industry is expected to reduce its silver usage in 2026. Silver paste now accounts for up to 20% of the total cost of solar cells, creating a challenging environment for manufacturers facing overcapacity, falling module prices, and compressed profit margins. Companies are exploring alternative metallization technologies and other methods to reduce silver consumption.
