Silver slid toward $76.8 per ounce on Wednesday, hitting a one-month low as hotter-than-expected US producer inflation and a stronger dollar outweighed its safe-haven appeal amid escalating Middle East tensions. The move reflects a market adjusting to a 0.7% jump in February wholesale prices, which pushed Treasury yields higher and boosted the greenback ahead of the Federal Reserve’s policy decision.
Although geopolitical risks remain elevated—following the killing of Iranian national security chief Ali Larijani and new attacks on energy infrastructure in the Persian Gulf—the rising opportunity cost of holding non-yielding assets has prompted a broad repricing of interest rate expectations. Investors are now focused on the FOMC’s dot plot and Chair Powell’s press conference to assess whether persistent price pressures will further postpone the rate cuts anticipated for 2026. Silver continues to face headwinds as the effective closure of the Strait of Hormuz shifts global inflation risks to the upside.