Silver rose back above $74 per ounce on Friday but was still poised for a third consecutive weekly loss, as surging energy prices from the Middle East conflict fueled inflation concerns and reduced expectations for interest rate cuts. Rising energy costs and mounting inflationary pressures prompted investors to shift into the dollar and Treasuries, weighing on safe-haven metals. The shock to energy markets also forced traders to reassess the policy outlook after hawkish signals from major central banks. The Fed kept rates unchanged, signaling that cuts are unlikely until inflation shows clear easing. Meanwhile, the ECB, BOJ, and BOE also left rates steady but struck more hawkish tones, indicating a bias toward tighter policy. Markets have now pushed back Fed easing expectations to 2027 and are pricing in two rate hikes each from the ECB and BOE this year, further dampening precious metals’ appeal.
