Silver slides below $60 as US-Iran strikes and hawkish Fed minutes rattle markets

Silver prices fell sharply Wednesday after the U.S. launched two consecutive nights of strikes on roughly 90 Iranian targets, boosting dollar demand.npr+1
Fed minutes from Chair Kevin Warsh's first meeting revealed a divided committee, with some officials pushing for a rate hike amid war-driven inflation.reuters
Silver recovered modestly to near $59 Thursday as the dollar eased, with analysts at Sprott Money suggesting late-June lows may hold as 2026's floor.mitrade+1

Silver prices tumbled on Tuesday and Wednesday as the United States launched two consecutive nights of airstrikes against Iran, driving investors into the dollar and pushing Treasury yields higher — a combination that pressured the non-yielding metal below $60 per ounce.

Escalating Conflict Fuels Dollar Strength

The sell-off accelerated after U.S. Central Command confirmed strikes on approximately 90 Iranian military targets on Tuesday and Wednesday nights, responding to Iranian attacks on commercial ships transiting the Strait of Hormuz. President Donald Trump declared an interim ceasefire agreement was "over," though he said negotiations could continue.npr+2

Silver September futures opened at $60.31 on Wednesday, July 8, down 1.7% from the prior session, before falling further to reach $57.45 by midday — a decline of more than 7% from the previous close of $61.81, according to USA Today. The U.S. Dollar Index rebounded as geopolitical risk drove safe-haven flows into the greenback, making dollar-denominated commodities more expensive for international buyers. Rising Treasury yields further increased the opportunity cost of holding non-yielding assets like silver.usatoday+2

Fed Minutes Reveal Hawkish Divide

The release of the Federal Reserve's June 16–17 meeting minutes on Wednesday added to the bearish backdrop for precious metals. According to Reuters Thomson Reuters Corporation , the minutes showed policymakers divided between holding rates steady and raising them, with some officials arguing for a hike in the face of inflation driven higher by the Iran conflict. The committee voted unanimously to keep the federal funds rate at 3.50%–3.75% at Fed Chair Kevin Warsh's inaugural meeting, but investors now broadly expect at least one rate hike this year.bankingjournal.aba+1

Market reaction to the minutes was muted in equities, but Treasury yields slightly pared earlier increases, Reuters reported.reuters

Schiff Calls Dip a Buying Opportunity

Longtime dollar bear Peter Schiff argued the pullback in precious metals represents a chance to buy. In commentary published this week, Schiff said the Federal Reserve is "trapped" by more than $40 trillion in national debt and will ultimately inflate it away, projecting silver could reach $200 per ounce and gold $10,000. He characterized silver's retreat from recent highs as consolidation before a new bull market, citing de-dollarization trends and central bank gold accumulation as long-term drivers.mining+1

By Thursday morning, silver had recovered modestly, trading near $59 with the dollar pulling back 0.25%. Craig Hemke of Sprott Money suggested the late-June lows are likely the floor for 2026, noting that easing energy prices in the second half of the year should bring inflation readings below expectations.mitrade+1

Sources (27)