Silver is caught in a pincer movement this week, with the precious metal shedding between five and seven percent as two distinct sources of pressure converge. Spot silver changed hands around $75 an ounce on Friday, marking a sharp retreat from the recent highs of $77 to $80 that had fueled optimism just days earlier.
The selloff has been anything but orderly. The metal has broken decisively out of the ascending price channel that had held since late March, after hitting resistance at $82.45. The relative strength index now sits at 36 — firmly in bearish territory, though not yet oversold. A sustained break below the $75 support level could accelerate losses toward $72, according to market technicians.
At the heart of the uncertainty lies a political drama unfolding in Washington. Kevin Warsh, President Trump’s nominee to chair the Federal Reserve, appeared before the Senate Banking Committee on April 21 and delivered a blistering critique of the central bank’s credibility. His call for a “regime change” at the Fed includes a proposal to scrap forward guidance — the tool the central bank has long used to signal the trajectory of interest rates. Markets, accustomed to that roadmap, are now navigating without a compass.
Complicating matters further, Senator Thom Tillis has blocked a vote on Warsh’s confirmation pending an investigation into current Fed Chair Jerome Powell. The nomination is now in limbo indefinitely, leaving the central bank’s leadership in a state of suspended animation.
Meanwhile, the macroeconomic backdrop is turning less supportive. The International Monetary Fund trimmed its US growth forecast for 2026 to 1.8 percent, while projecting global expansion of 3.1 percent alongside slightly higher inflation. A strengthening dollar and rising bond yields are compounding the pressure on non-yielding assets like silver.
Should investors sell immediately? Or is it worth buying Silber Preis?
Adding a geopolitical dimension to the selloff, tensions in the Middle East have escalated dramatically. The United States and Iran remain locked in a standoff over the strategically vital Strait of Hormuz, with peace talks stalled. President Trump has taken to social media to stoke the fire, ordering the US Navy to fire on hostile mine-layers. US forces also boarded an Iranian supertanker in the Indian Ocean. The result has been a spike in energy costs, with Brent crude stabilizing around $93 a barrel.
Rising oil prices are feeding fears of stubborn inflation, which in turn raises the specter of tighter monetary policy. Silver, which behaves more like a risk asset than a safe haven in this environment, is taking a double hit: higher rates diminish its appeal, while a strong dollar makes it more expensive for overseas buyers. The metal has also fallen below its 38-day moving average, though it remains comfortably above the 200-day line, preserving the long-term uptrend.
The technical damage is real, but the fundamental picture tells a different story. The Silver Institute projects a structural market deficit of 46.3 million ounces for 2026, driven by robust demand from artificial intelligence infrastructure, the automotive sector, and power grid expansion. That supply shortfall should provide a floor under prices over the medium term.
All eyes now turn to the Federal Open Market Committee meeting on April 29. Chair Powell’s subsequent press conference will be scrutinized for any hints on the rate path — and could determine whether silver’s correction deepens or finds its footing.
Ad
Silber Preis Stock: Buy or Sell?! New Silber Preis Analysis from April 25 delivers the answer:
The latest Silber Preis figures speak for themselves: Urgent action needed for Silber Preis investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from April 25.
Silber Preis: Buy or sell? Read more here...