Silver (XAG/USD) has fallen sharply in October 2026 to around $54 per ounce amid rising oil prices above $100 and inflation concerns that bolster expectations for steady or higher U.S. interest rates. The metal's dual role as both an industrial input—accounting for roughly 55% of demand from solar, electronics, and AI hardware—and a monetary asset leaves it sensitive to real yields and the dollar. Persistent supply deficits, now in their sixth straight year, provide structural support, yet recent solar thrifting has tempered industrial forecasts. Traders are focused on the Federal Reserve's October 28 policy decision, with markets pricing limited near-term easing, as higher-for-longer rates weigh on non-yielding assets.