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Silver stalls near $60 as oil jumps on Middle East supply risks

Silver was up about 0.8% near $59.25, while WTI rose more than 2% to around $86, lifting concerns about hotter inflation expectations.

Reported · Written up by our desk · Precious Metals

Silver prices inched higher but struggled to push through the $60 psychological level, trading around $59.25 to $59.34 during European hours and up about 0.8%.

The rally lost momentum as oil prices surged, with WTI up more than 2% to roughly $86, the highest level seen in over five weeks. FXStreet links the move to escalating Middle East energy supply concerns, including the reported closure of the Bab el-Mandeb Strait, which it says carries about 7% of global energy shipments.

The tighter supply fears are also feeding into expectations for hotter inflation, which would likely force central banks to maintain or adopt tighter monetary conditions. Because silver is a non-yielding asset, higher hawkish policy expectations are viewed as a headwind, FXStreet notes.

Looking ahead, FXStreet highlights an upcoming European Central Bank decision expected to keep policy rates steady, with market focus on commentary from ECB President Christine Lagarde about the inflation outlook. It also points to technical levels for XAG/USD, citing the 20-day EMA near $59.68 as an immediate hurdle, a daily close above it as needed to extend recovery toward $63.28, and the July low at $54.77 as key support.

Latest closeSilver $59.51 ▲1.1%|WTI crude $87.52 ▲3.1%

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