Silver Price Forecast: XAG/USD remains below $61.00 following attacks on Riyadh’s airport

Silver price (XAG/USD) loses ground after registering over 2.5% gains in the previous trading day, remaining around $60.70 per troy ounce during European hours on Monday. Non-yielding Silver struggles amid inflationary concerns as crude oil prices may regain ground following deadly attacks on Riyadh’s King Khalid International Airport.

The Riyadh attack has prompted United States (US) President Donald Trump to consider joining Saudi Arabia in retaliating against Iran-backed Houthis in Yemen. The Riyadh airport was targeted again on Sunday by Houthi militants, just a day after a previous strike killed 12 people and injured more than 300.

Moreover, a drone struck an oil tanker near the Sohar anchorage off Oman over the weekend, just outside the Strait of Hormuz, highlighting ongoing vulnerabilities despite signs of higher crude exports from the Persian Gulf.

University of Michigan's Consumer Sentiment Index declined to 46.3 in October, down from 48.1 in September and missing market forecasts of 47.6. According to the CME FedWatch tool, the probability of a rate hike of at least 25 basis points this month is 19.4%, down from 24.4% the previous week. In contrast, market participants are strongly pricing in an 86% chance of a rate increase at the Fed's December meeting.

HSBC links bond market shock to Iran-driven oil surge

Strategists at HSBC argue that “one of the major factors behind 2026’s bond market shock has been the surge in oil prices caused by the Iran conflict,” highlighting how the sharp rise in energy costs has fed directly into fixed income volatility and repricing.