BENGALURU, March 9, 2026, 18:05 IST
Spot silver slipped 0.3% to $84.07 an ounce by 1012 GMT, paring steeper losses after tumbling over 5% earlier. Gold dropped 1.2%, while platinum shed 1% and palladium was off 1.3% as investors scaled back positions in precious metals, seeking liquidity instead.
Oil surged, touching $119.50 a barrel and rattling commodity markets, as the escalating U.S.-Israeli war on Iran stoked fears of another inflation surge. “No obvious offramp,” IG analyst Tony Sycamore said, warning that the prospect of deeper economic fallout hasn’t faded. Reuters
This carries weight for silver, since pricier oil often stirs up inflation worries and dampens hopes for rate cuts. The dollar surged—investors scrambling to hold cash. Nick Rees at Monex Europe said the greenback’s relative distance from the Middle East turmoil was giving it an edge.
Traders in U.S. rates markets shifted bets on the next Federal Reserve cut, now leaning toward September or October instead of June, according to LSEG data. The surge in energy prices has made both U.S. and worldwide recession risks much steeper as inflation rises, IG chief market analyst Chris Beauchamp said.
Europe was moving fast to adjust. Money markets piled into wagers on rate hikes from the European Central Bank, the Swiss National Bank, and Sweden’s Riksbank. Frederik Ducrozet at Pictet Wealth Management flagged that policymakers might be staring down “another supply shock” rolling through supply chains. Reuters
It’s a similar story in Asia. Stagflation risks—think sluggish growth mixed with persistent inflation—are ticking up daily, according to Toru Nishihama, chief emerging market economist at Dai-ichi Life Research Institute. Fuel prices keep pushing higher while policymakers juggle demands from markets and governments alike.
Silver’s wild ride this year is on full display after the latest drop. Back in late January, the metal surged to a record $121.64—then quickly reversed course. Sycamore would later call these precious metals moves aftershocks, a reaction to what he called “extreme volatility.” Reuters
The outlook isn’t clear-cut. Peter Grant at Zaner Metals pointed to ongoing volatility, despite his optimistic stance. TD Securities’ Bart Melek flagged rising Treasury yields as a typical drag on precious metals—silver could take a hit if the dollar and oil prices keep climbing.
