Silver prices fell to around US$80 per troy ounce on Tuesday (March 17th) and remained near a one-month low, as market participants continued to assess the inflation risks from the Middle East conflict and its implications for monetary policy.

Tensions between the US, Israel, and Iran entered their third week, with Iran escalating attacks on energy infrastructure in the region. While geopolitical uncertainty boosted demand for hedge assets, persistently high energy prices also raised inflation concerns. If energy gains persist, the market expects central banks to maintain a more hawkish stance for longer.

Investors expect the Federal Reserve to hold interest rates for a second consecutive meeting. Other major central banks, such as the ECB, the Bank of England, and the Bank of Japan, are also expected to maintain their current policy settings, with attention to how they assess the impact of energy shocks on inflation and growth.

Despite recent weakness, silver has still

Despite recent weakness, silver has still recorded a gain of around 12% since the start of the year. Prices also remain supported by expectations of a supply deficit in 2026 and strong industrial demand, particularly from the electronics sector.