Why Is Silver Down 9% Today, 5/15/26?

Silver (XAGUSD) is down by over 9% on Friday amid rising yields and a strengthening U.S. dollar.

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With higher yields, the opportunity cost of holding silver rises as investors can earn stronger returns from interest-bearing assets like Treasuries. Silver doesn’t pay out interest, making it less attractive in comparison. Silver is also facing pressure from a rising U.S. Dollar Index. As the dollar rises, silver becomes more expensive for foreign buyers, reducing demand.

Rate Cut Hopes Fade as Silver Pulls Back

Meanwhile, expectations for rate cuts have dropped sharply in recent days amid rising inflation risks and surging oil and gas prices. That’s bad for silver because it typically performs better in a low-rate environment.

With today’s decline, silver has now completely reversed its rally during the past month. However, the precious metal is still up by 8% year-to-date, similar to the return of the S&P 500 (SPX).