Where are silver prices heading amid inflation and monetary policy?

"Silver, long regarded as an alternative safe haven, now seems to be losing part of that role in favour of yield-bearing financial instruments, especially in an environment of rising interest rates and increasing opportunity costs."

"Elevated inflation is pushing central banks toward tighter monetary policy, which in turn raises real yields and makes holding non-yielding assets like silver less attractive."

"From this standpoint, I believe silver has entered an inverse relationship with inflation, where rising inflation has become a source of pressure rather than support-marking a fundamental shift in how we interpret current market dynamics."

"As long as real interest rates remain positive, investors will continue to favour yield-generating assets, limiting any strong recovery in silver prices."

Silver prices have dropped below $74.50 per ounce due to a complex interplay of conflict-driven inflation, tighter monetary policies, and changing market priorities. Traditionally seen as a safe haven, silver is losing appeal in favor of yield-bearing assets as interest rates rise. Inflation from geopolitical conflicts is pressuring silver, which now has an inverse relationship with inflation. Central banks' commitment to high interest rates further limits silver's attractiveness, as investors prefer yield-generating assets over non-yielding ones like silver.

Read at London Business News | Londonlovesbusiness.com