2026.03.1913:06:59UTC+00Silver Crashes 10% as Iran War, Hawkish Central Banks Spark Selloff

Silver slumped more than 10% toward $65 per ounce on Thursday, its weakest level since mid-December, as the selloff in precious metals intensified amid war-related volatility and a hawkish turn by major central banks. Investors sharply reassessed their outlook after leading monetary authorities left interest rates unchanged, emphasizing persistent inflation risks and mounting geopolitical uncertainty. The US Federal Reserve held rates steady and warned of potential economic fallout from the Iran conflict and stubborn inflation pressures, with Chair Jerome Powell explicitly keeping the option of another rate hike on the table. In Japan, BoJ Governor Kazuo Ueda signaled a possible rate increase as early as April, while the Bank of England unanimously maintained its policy rate but adopted a markedly more hawkish tone. As a result, markets have pushed back expectations for Fed rate cuts to 2027 and are now pricing in two BoE hikes this year, severely undermining the outlook for silver.