Silver Price Falls as Oil Risks Rise After Riyadh Attacks

Silver prices slipped during European trading on Monday after a previous session gain, with XAG/USD trading near $60.70 per troy ounce as investors evaluated Middle East security risks, oil market concerns, and monetary policy expectations, according to FXStreet.

FXStreet reported that silver had gained more than 2.5% in the prior trading session before losing momentum. The metal remained under pressure as rising crude oil risks renewed inflation concerns for markets.

The decline followed attacks targeting Riyadh’s King Khalid International Airport, where Houthi militants carried out another strike on Sunday, according to FXStreet. The report said an earlier strike killed 12 people and injured more than 300.

FXStreet also reported that US President Donald Trump was considering joining Saudi Arabia in retaliatory action against Iran-backed Houthis in Yemen after the attacks. The developments increased attention on energy supply risks.

Additional pressure came from an incident involving an oil tanker near the Sohar anchorage off Oman, outside the Strait of Hormuz, according to FXStreet. The event highlighted continued vulnerabilities in the region despite signs of higher crude exports from the Persian Gulf.

Market data cited by FXStreet showed the University of Michigan Consumer Sentiment Index fell to 46.3 in October from 48.1 in September, missing forecasts of 47.6. The report linked the weaker sentiment reading with ongoing market uncertainty.

FXStreet cited the CME FedWatch tool showing the probability of a Federal Reserve rate increase of at least 25 basis points this month at 19.4%, down from 24.4% the previous week. The same data showed markets pricing an 86% chance of a rate increase at the Fed’s December meeting.

HSBC strategists connected recent bond market volatility with energy price movements linked to the Iran conflict. The firm highlighted the relationship between oil costs and fixed-income market repricing.

"One of the major factors behind 2026’s bond market shock has been the surge in oil prices caused by the Iran conflict," said HSBC strategists.

Silver prices are also influenced by industrial demand, investment flows, mining supply, recycling rates, and movements in the US dollar, according to FXStreet. The metal is used in industries including electronics and solar energy because of its high electrical conductivity.

FXStreet noted that silver often follows gold movements because both metals are considered safe-haven assets. The gold-silver ratio is used by some investors to assess relative valuations between the two precious metals.