Could Silver Prices Recover After July’s Heavy Losses?

The US silver market endured a punishing July ****, with prices plunging approximately **.** month-on-month to close at $*,***/MT, according to ChemAnalyst data. The white metal had already been cut in half from its January peak above $***/oz, and the July decline extended the downturn to a year-to-date low near $**/oz on July **. The primary catalyst was the Federal Reserve&#**;s increasingly hawkish stance, reinforced by the July FOMC meeting under new Chair Kevin Warsh. The committee&#**;s *-* vote to hold rates steady—with three dissenters actually favoring a hike—represented the most hawkish divergence of the current tightening cycle. Firmer long-term Treasury yields and a resilient dollar raised the opportunity cost of holding non-yielding silver, while industrial demand—which accounts for approximately *** of global silver consumption—remained subdued amid manufacturing contraction.

Demand-side pressures intensified across key sectors. The national manufacturing activity index remained in contraction territory, prompting electronics assemblers and photovoltaic...