Silver prices fell from around $60 to roughly $56 per ounce after hotter-than-expected U.S. inflation data triggered another wave of selling across precious metals.
The move is being driven by the same macro forces weighing on gold.
U.S. CPI rose 0.6% month over month in September and 3.7% year over year, coming in slightly above the 3.6% annual increase markets had expected.
When CPI comes in hotter than expected, traders often price in a more restrictive Federal Reserve path. That can push Treasury yields higher and support the U.S. dollar, both of which can pressure the silver price because the metal does not pay interest.
Silver is also more sensitive than gold to changes in economic expectations because it has a large industrial-demand component.
Peter Schiff reacted to the inflation report by noting that gold and silver were following bond prices lower.
His argument is that the market is focused on the immediate effect of higher inflation on interest-rate expectations, but may be missing what happens if inflation keeps rising faster than nominal rates.
Schiff wrote that if nominal rates fail to keep pace with inflation, real interest rates fall.
In response to hotter-than-expected inflation data, gold & silver are following bond prices lower. But inflation will keep heating up as the Fed stays behind the curve. This is bullish for precious metals. When inflation rises faster than nominal rates, real interest rates fall.
— Peter Schiff (@PeterSchiff) October 14, 2026
That is important for precious metals.
Lower real rates reduce the opportunity cost of holding assets such as silver and gold, which can support demand even if nominal yields remain high.
In simple terms, a 5% bond yield is less attractive if inflation is running close to or above that level.
What Comes Next for Silver
At roughly $56, silver has already fallen about 6.7% from the $60 area.
The first level to watch is $55-$56.
If buyers defend that zone, silver could attempt a recovery toward $58-$60.
A sustained break below $55 would weaken that setup and bring lower support areas back into focus.
Schiff’s view is clearly bullish over a longer horizon, but the immediate price reaction still depends on yields, the dollar and how markets interpret the next inflation and Fed data.
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