Silver prices fell early Friday. The metal closed below its 50-day moving average for a second straight session. Volatility in crude oil markets drove this price action.
Spot silver (XAGUSD) traded at $83.20 at 07:21 GMT. This was down $0.66, or 0.78%. Crude oil prices pushed toward $100 per barrel late in the week. This followed a steep sell-off from Monday’s four-year high.
Tensions in the Middle East disrupted energy supply routes. This affected the Strait of Hormuz. About 20% of global oil moves through this region. Rising oil prices increase inflation concerns and complicate Federal Reserve plans for interest rate cuts.
Goldman Sachs now expects the Fed to cut rates in September and December. Earlier this year, silver prices rose on bets of multiple rate cuts. High energy prices have since pushed these expectations further out. If crude oil stays near $100, silver may trade sideways or lower. Strong industrial demand currently supports prices.