Precious metals faced a sell-off on Thursday. iShares Silver Trust ( SLV ) and other silver assets plummeted as investors reacted to a hawkish shift from global central banks.

Silver dropped as low as 10% toward $65 per ounce, marking its lowest level since mid-December, according to data from Trading Economics.

Central Banks Turn Hawkish

The Federal Reserve, European Central Bank and Bank of England held rates steady this week. However, they adopted aggressive tones regarding inflation risks.

U.S. Fed Chair Jerome Powell noted a hike remains possible, though unlikely for now. This hawkish stance weighed heavily on non-yielding assets like gold and silver.

Geopolitical Volatility and Inflation

The escalating Iran war has sent energy prices soaring. Brent oil traded above $110 a barrel following attacks on Middle East energy facilities.

"Gold is now a very widely held position for institutional investors," stated Daniel Ghali, commodity strategist at TD Securities, via Reuters. Ghali noted the "foundations of that trade are now weakening."

Silver Follows Gold Lower

Silver's decline mirrored a crash in the gold market. Spot gold dropped nearly 4% to $4,629.29 per ounce. SPDR Gold Trust fell as gold hit its seventh straight losing session.

Analysts at SP Angel attributed the move, according to Reuters, to profit-taking and a stronger dollar. They noted traders are locking in gains to cover margin calls or rotate into hydrocarbons.

U.S. policymakers signaled no cuts until inflation clearly eases. This environment continues to pressure the "debasement trade" that supported metals throughout 2025, according to Ghali.

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