Silver holds above £49 an ounce as falling oil prices offset Fed's rate hike

Silver held above £49 an ounce over the weekend, sitting at Friday's closing levels while UK markets stay shut until Monday. Spot silver finished the week at $66.13 a troy ounce, according to Kitco's Friday PM report, converting to around £49.40 at current exchange rates, or roughly £1.59 a gram before dealer costs. Gold closed the same session at $4,382.38 an ounce, about £3,273, or £105.20 a gram.

Both metals gained on Friday as oil prices fell for a third consecutive session, easing near-term inflation worries. Brent crude settled at $104.87 a barrel, down almost 1%, after China asked Iran, at Saudi Arabia's request, to curb Houthi attacks on Saudi oil infrastructure. Lower energy costs tend to ease pressure on precious metals by softening the inflation outlook that drives safe-haven buying.

The advance came despite a headwind from the Federal Reserve, which raised US interest rates a quarter point to 3.75 to 4.00 per cent on 16 September, its first hike since 2023. Higher rates typically weigh on gold and silver, as neither pays interest, and the 10-year Treasury yield's return to 5 per cent capped Friday's gains. Markets now price a 58 per cent chance of another rate hike in October.

At $66.13, silver puts the gold to silver ratio near 66, meaning it takes about 66 ounces of silver to buy one ounce of gold. For UK buyers, the spot price is only the starting point: dealer premium, delivery and 20% VAT on physical silver all add to the final cost. This is market information, not financial advice.