Silver faced renewed selling pressure after hotter-than-expected U.S. inflation data triggered a wave of risk-off trading across precious metals. Silver futures slid toward $59 ahead of the release, then dropped from around $60 to roughly $56 per ounce as traders priced in a more restrictive Federal Reserve path.
The move mirrored weakness in gold and was driven by the same macro forces. When CPI comes in above forecasts, markets tend to expect the Fed to keep policy tighter for longer. That pushes Treasury yields higher and supports the U.S. dollar, both of which pressure non-yielding assets such as silver. Silver is especially sensitive because it also has a large industrial-demand component, making it more exposed to shifting economic expectations than gold.
Peter Schiff noted that gold and silver were following bond prices lower after the data, but argued the market may be focusing too much on nominal rate expectations. He said that if nominal rates fail to keep pace with inflation, real interest rates fall. Lower real rates reduce the opportunity cost of holding precious metals and can support demand even if nominal yields remain high.
From a technical perspective, silver has fallen about 6.7% from the $60 area to roughly $56. Analysts are watching the $55–$56 support zone. A defense of that area could allow a recovery toward $58–$60, while a sustained break below $55 would weaken the setup and bring lower support levels into focus. The silver market is also facing its sixth consecutive annual supply deficit, a longer-term factor that may influence sentiment.
