<div id="readability-page-1"><div><div><div>Key points:<ul><li>Silver sheds 48% from ATH </li><li>War jitters spark rate-hike fears </li><li>Rate-hike fears cool demand </li></ul></div>Precious metal is floating near the $64 mark and has erased some $60 from its peak prices earlier this year.🥈 Silver’s Shine Keeps Fading<ul><li>Silver slipped about 1% early Wednesday, falling below its 200-day simple moving average — a widely watched long-term trend indicator. When prices break beneath that line, technical traders tend to see it as a warning that momentum may be shifting lower. </li><li>The metal touched $64 per ounce, its weakest level since March. That leaves silver down roughly 48% from its late-January record high of $122, a remarkable reversal for an asset that was one of the market’s hottest trades in Q1. </li><li>Safe havens are supposed to feel safe. Lately, silver has felt more like a roller coaster with a precious-metals label attached. The sharp decline suggests investors are reassessing how much protection they can get from it. </li></ul>💵 Dollar, Yields Take Center Stage<ul><li>The main culprit appears to be a changing outlook for interest rates. Treasury yields have climbed, the US dollar has strengthened, and both tend to create headwinds for silver by making alternative investments look more attractive. </li><li>Traders are now pricing in better than a 70% chance of a Federal Reserve rate hike by December. Higher rates increase the opportunity cost of holding assets like silver that generate no income, no dividends, and no interest payments. </li><li>The latest shift followed renewed tensions between the US and Iran after Washington launched strikes against Iranian targets, accusing Tehran of involvement in the downing of a US Apache helicopter near the Strait of Hormuz. </li></ul>📊 Inflation Data in the Spotlight<ul><li>Markets are now laser-focused on US inflation data. The May Consumer Price Index lands later Wednesday, followed by the Producer Price Index on Thursday. Together, the reports could heavily influence expectations for future Fed decisions. </li><li>The irony is hard to miss. Silver and gold are often viewed as inflation hedges, meaning assets that can preserve value when prices rise. But when inflation increases the likelihood of rate hikes, precious metals can end up under pressure instead. </li><li>Gold is feeling the heat too. The yellow metal dropped more than 1% Wednesday to an 11-week low just below $4,200 an ounce. For bullion bulls, the next inflation numbers may matter as much as the next war headline. </li></ul></div></div></div>

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Silver prices have plummeted nearly 50% from their January record high, currently hovering near $64 per ounce. This decline is driven by rising US Treasury yields and a strengthening dollar, fueled by fears of Federal Reserve rate hikes following geopolitical tensions with Iran. Technical indicators suggest further downward momentum as silver falls below its 200-day moving average. Investors are reassessing safe-haven demand, with upcoming inflation data expected to significantly influence future market direction.

XAG/USD: Silver Down Nearly 50% from Record as Traders Reassess Haven Demand