Silver prices crashed sharply on May 15, 2026, with the precious metal falling nearly 5% to 7% during the session. Prices slipped toward the $77 to $80 per ounce range as investors reacted to rising inflation fears, stronger US Treasury yields, and a surging US dollar.
The latest decline extended losses from the previous session and pushed silver into one of its steepest short term corrections of the year. Despite the sharp drop, silver still remains massively higher compared to last year after a historic rally earlier in 2026.
Silver price falls as Fed rate hike expectations rise
One of the biggest reasons behind today’s silver selloff is the growing expectation that the US Federal Reserve may keep interest rates higher for longer.
Recent inflation data came in stronger than expected, leading traders to completely price out possible rate cuts for 2026. Some investors are now even betting on another potential rate hike later this year.
Higher interest rates usually hurt precious metals like silver because they do not offer any yield or interest income. As bond yields rise, investors often shift money away from metals and toward fixed income assets.
Silver is especially sensitive to changes in interest rate expectations because it trades both as a safe haven asset and an industrial commodity.
Strong US dollar and weak metals market pressure silver prices
The US dollar also strengthened sharply, creating additional pressure on silver prices. A stronger dollar makes silver more expensive for international buyers, which can reduce demand in global markets.
At the same time, Treasury yields moved higher, adding more downside pressure across the precious metals sector.
Gold and other metals also traded lower during the session, but silver tends to experience bigger price swings because of its dual role in financial and industrial markets. Demand from industries like solar energy, electronics, and manufacturing often becomes uncertain during periods of economic stress.
Analysts also pointed to heavy profit booking after silver’s massive rally earlier this year. Silver had previously surged to all time highs above $120 per ounce in 2026, leading many traders to lock in gains during the recent correction.
Some market participants also believe futures market liquidations and margin related selling may have accelerated the sharp decline.
Silver still remains over 100% higher than last year
Even after today’s drop, silver prices are still up more than 100% compared to last year. The metal has remained one of the best performing commodities due to long term supply shortages and strong industrial demand, especially from China and the solar sector.
Investors continue to closely watch upcoming US economic data, Federal Reserve commentary, and movements in the US dollar as short term volatility remains extremely high.
While near term pressure could continue, many analysts still remain bullish on silver over the longer term because of persistent supply deficits and growing industrial usage worldwide.
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