Silver Drops Below $54 to Lowest Level Since November 2025

Silver prices fell below $54 an ounce, recording their lowest level since November 2025, under pressure from rising oil prices and higher-than-expected US inflation data.

Data showed that consumer and producer prices in the United States rose more than expected, reinforcing fears that inflation will remain elevated for longer. This came at a time when oil prices climbed following Houthi attacks on Saudi Arabia, adding fresh pressure to energy costs.

Investors expect the Federal Reserve to keep interest rates unchanged at its October 27 and 28 meeting, while the CME Group's FedWatch tool indicates a 10% probability of a rate hike next week, compared to around 80% in December. Markets are awaiting the Personal Consumption Expenditures (PCE) price index data on October 29.

Silver combines industrial utility with a monetary role, making it sensitive to interest rates and growth expectations; thus, it tends to decline when bond yields rise or fears of monetary policy tightening increase.

What Do These Terms Mean?

Ounce: A unit of weight for precious metals equal to approximately 31.1 grams, serving as the benchmark for global gold and silver pricing.

PCE Data: Personal Consumption Expenditures Price Index, which measures changes in the price of goods and services purchased by consumers, and is considered an important inflation metric by the Federal Reserve.

FedWatch: A tool by the CME Group that displays market expectations for the likelihood of interest rate changes based on interest rate futures prices.