Why Is Silver Down 4% Today, 5/19/26?

Silver (XAGUSD) is down by over 4% on Tuesday amid rising yields and growing odds of higher-for-longer interest rates.

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With higher yields, the opportunity cost of holding silver compared to interest-bearing assets, like Treasuries, increases. That’s because the precious metal doesn’t pay out interest, making it less attractive in comparison. Strength in the U.S. Dollar Index is also weighing on silver, as a stronger dollar makes it more expensive for foreign buyers because it is priced in dollars.

Rate Cut Odds Plummet as Silver Retreats

While higher inflation tends to benefit silver given its status as a store of value, the risk of rising prices has shattered expectations of rate cuts. That tends to be a headwind for silver, as it typically performs better in a low-rate environment.

After surging to as high as $89 earlier this month, silver is now trading at $74 per ounce and has shed 15% over the past five trading days. Its year-to-date return of 4.7% is now trailing the S&P 500 (SPX), which is up by 7.1%.