Silver tumbles below $50, down nearly 60% from January high
Silver (XAG/USD) fell more than 5% on Friday, dropping below $50 for the first time since November 2025, as a broad sell-off in precious metals intensified.
The metal is set to close October down around 18%, its worst monthly performance since June, when it lost 22%. Gold (XAU/USD) also fell, slipping back under $4,000 an ounce for the first time since October 2025.
The pressure on metals has been linked to a chain of events starting with a Middle East conflict that erupted in late February, which drove oil prices higher and pushed major central banks, led by the US Federal Reserve (Fed), toward tighter policy to fight inflation. Higher rates make non-yielding assets like silver less attractive. The Fed held its benchmark rate at 3.75%-4.00% on Wednesday, and markets are pricing in another hike in December.
Silver now sits almost 60% below the record near $121 it hit in January. Part of the latest drop may reflect forced selling, as losses tied to a technology-stock rout over heavy artificial-intelligence spending push some investors to liquidate precious metals positions to cover losses elsewhere. A firmer US Dollar is adding further pressure on the metal.
On the charts, XAG/USD trades well below its 50-day, 100-day and 200-day moving averages, with the 14-day Relative Strength Index near 23 pointing to oversold conditions and a negative MACD reading confirming the downtrend. Resistance is seen near $50 and $55, with the 200-day average around $70.39 marking a more distant ceiling. Support lies near $45 if selling continues.
Why it matters for markets: A steep decline in silver and gold alongside rising Fed rate expectations signals tighter global financial conditions, which tend to support the US Dollar and pressure non-yielding assets. Moves in precious metals also often mirror broader risk sentiment, including swings in equity markets such as the S&P 500 and Nasdaq 100.
Source: FXStreet