September silver futures fell 2.6% from Friday’s close amid geopolitical risks and potential Fed rate pressures.
Silver September futures opened at $59.71 per ounce on July 13, down 0.8% from Friday’s $60.17 close, before sliding further to $58.60 by 8:33 a.m. ET. The decline follows renewed U.S.-Iran hostilities, with Iran declaring the Strait of Hormuz effectively closed, lifting oil prices and stoking inflation concerns.
The metal has underperformed recently, down 4.6% week-over-week and 10.9% month-over-month, though it remains 59.4% higher year-over-year. Silver’s rally peaked at 173.3% annual growth in mid-May, but Fed policy tightening expectations are now weighing on non-yielding assets.
Geopolitical uncertainty and rising energy costs may prolong inflationary pressures, complicating the Fed’s efforts to stabilize prices without further rate hikes.