Silver sinks toward 2026 lows as oil jumps

Silver futures and spot prices slide sharply

Silver led losses in the precious metals complex on October 22, 2026, as futures and spot benchmarks fell to some of their weakest levels this year. Silver futures declined by $0.665, or 1.15%, to $57.045 per ounce compared with a previous close of $58.095 per ounce. In the physical market, spot silver tumbled to $55.94 per ounce, down $2.04, or 3.52%, on the day. The drop pushed prices close to year-to-date lows highlighted around $54.77, underscoring the intensity of the latest selloff.

The decline in silver came during a fifth straight lower session for precious metals, extending a broader pullback that has affected both futures and physical trading. The gold (XAUUSD)/silver ratio widened to 73.0 from roughly 71.4 the previous day, reflecting silver’s steeper move relative to gold. Speculative money exited silver and gold positions as the selloff extended, amplifying downward pressure on prices.

Oil rally revives inflation and rate-hike concerns

The slide in silver coincided with a renewed surge in crude oil that reignited inflation worries and expectations for tighter monetary policy. Brent crude (UKOUSD) traded above $108 per barrel after a rally of more than 2% over two sessions linked to rising tensions in the Middle East. Around 00:34 GMT, Brent crude (UKOUSD) futures were quoted at $110.11 a barrel and U.S. West Texas Intermediate (USOUSD) at $98.12, extending gains in energy markets. The move in oil prices was accompanied by a rise in nominal Treasury yields, adding to the headwinds for non-yielding precious metals.

Higher oil prices were linked to further attacks by Yemen’s Houthi group in Saudi Arabia and a decision by the United States to order some diplomats and family members to leave its missions in the Kingdom. These developments reinforced concerns that elevated energy costs could keep inflation pressures persistent. In turn, market participants assessed a greater likelihood that interest rates could remain higher for longer, a scenario that typically weighs on assets such as gold and silver that do not generate income.

Broader pressure on precious metals and rate outlook

Gold also weakened, falling more than 1% as the oil rally and resulting inflation concerns shaped expectations ahead of the next Federal Reserve meeting. Investors looked to the upcoming policy decision for further clues on the interest rate outlook, with the day’s trading reflecting renewed bets on possible additional tightening or an extended period of restrictive policy. In this environment, silver’s sharper beta to shifts in rate expectations became evident in its larger percentage decline relative to gold.

The move was driven primarily by paper-and-futures selling rather than a clear deterioration in physical coin and bar demand. FXStreet said lower spot prices reset entry levels for buyers who had been priced out earlier in the year. Nonetheless, with silver trading near technical support around recent lows and the gold/silver ratio widening, the market remained focused on oil’s trajectory and forthcoming central bank signals as key drivers for the next phase in precious metals pricing.