Silver Rises Over 120% YTD 
Gold and silver market update — April 28, 2026
In today’s update: WTI hit $100.09 as the UAE quit OPEC, Trump moved to reject Iran’s Hormuz proposal, and the Fed opened what may be Powell’s final meeting. As a result, gold and silver investors are navigating five converging signals at once — and each one points in the same direction.
Why is the Strait of Hormuz still closed?
Iran submitted a proposal on April 27–28, 2026 to reopen the Strait. The terms: end the war, lift the US naval blockade, and defer nuclear talks until later. However, Trump reviewed it Monday and is unlikely to accept it. Secretary of State Marco Rubio dismissed any nuclear-free deal outright, calling the nuclear question “the reason why we’re in this in the first place.” A US counterproposal is expected, but the gap hasn’t moved.
Crucially, the Strait carries 20% of global oil and gas supply and has been effectively closed since late February 2026. That closure keeps energy prices elevated, inflation sticky, and the Fed unable to cut. For gold, that combination is not noise. It is, in fact, the foundation of the current bid.
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What does $100 oil mean for gold and silver prices?
WTI crude reached $100.09 a barrel on April 28, 2026 — up 3.86% — its seventh consecutive session of gains. Brent crude also climbed, rising above $111. Notably, the Consumer Price Index (CPI) is already at 3.3%, well above the Fed’s 2% target. Moreover, sustained oil above $100 historically adds 0.3–0.5 percentage points to core inflation over the following two quarters, per Federal Reserve modelling.
This matters for precious metals in two distinct ways. Supply-disruption oil deepens Fed paralysis — a tailwind for gold. It also raises industrial input costs — a headwind for silver. As a result, gold fell 2.08% to approximately $4,570, while silver dropped further still. The two metals are responding to the same data for different reasons.
What does the UAE’s OPEC exit mean for oil prices?
The United Arab Emirates announced on April 28, 2026 that it will exit OPEC and OPEC+ effective May 1, ending a 59-year membership that began when Abu Dhabi joined in 1967. Before the Iran war, the UAE was OPEC’s third-largest producer at 3.4 million barrels per day. However, the Hormuz closure has since cut that figure to 1.9 million bpd, according to The National. Energy Minister Suhail Al Mazrouei told CNN the timing is deliberate: “It will not significantly impact the market… because the Strait of Hormuz is closed.”
In the near term, he’s right. But the structural signal is bigger than the barrels. OPEC solidarity is fracturing during an active energy crisis — not in a period of market calm. Consequently, oil price volatility is likely to stay elevated for longer. Elevated volatility, in turn, feeds inflation uncertainty. That uncertainty keeps the Fed pinned — and a pinned Fed remains gold’s most durable tailwind.
Why can’t the Fed cut rates right now?
The Federal Open Market Committee (FOMC) opened its April 28–29, 2026 meeting — almost certainly Jerome Powell’s last before his term expires May 15. Meanwhile, CME Group’s FedWatch tool shows a 100% probability of rates holding at 3.5%–3.75%, marking a third consecutive pause. The Senate Banking Committee is also scheduled to vote on Kevin Warsh’s confirmation on Wednesday, April 29 at 10am ET.
The Fed’s position is structurally impossible. With CPI at 3.3% and oil above $100, cutting rates risks stoking inflation further. With growth softening, hiking risks tipping the economy into contraction. This is fiscal dominance — government debt costs are now large enough to constrain the Fed in both directions, regardless of who chairs it. Gold doesn’t need rate cuts. It needs the Fed to stay trapped. It is.
Why is silver falling when inflation is rising?
Silver fell to $73.42 per troy ounce on April 28, 2026 — down 2.78% from $75.52 on April 27, per TradingEconomics. As a result, the gold/silver ratio widened to 63.01, up from 61.1 on April 21. The reason isn’t complicated. When oil rises on supply disruption rather than demand recovery, it hits silver’s industrial demand outlook first. Its monetary safe-haven role, however, takes longer to respond.
That said, the structural picture hasn’t moved. The Silver Institute’s World Silver Survey 2026 records a cumulative supply drawdown of 762 million troy ounces since 2021, with a projected 2026 deficit of 46.3 million ounces. For context, silver’s all-time high was $121.67 on January 29, 2026. Furthermore, the gold/silver ratio had already compressed from above 63 to 61 between April 17–21. Today’s diplomatic deadlock caused this reversal. It did not, however, change the underlying fundamentals.
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SOURCES
1. US Bureau of Labor Statistics — Consumer Price Index, March 2026
2–5. Market data sourced from TradingEconomics, April 28, 2026: WTI Crude Oil · Brent Crude Oil · Gold Spot Price · Silver Spot Price
6. The National — UAE Announces It Will Leave OPEC
7. CNN — UAE to Quit OPEC as Iran War Roils Energy Sector
8. Khaleej Times — UAE Announces Decision to Withdraw from OPEC, OPEC+ from May 1
9. Al Jazeera — What’s in Iran’s Latest Proposal and How Has the US Responded?
10. The Hill — Rubio Calls Iran’s Deal to Reopen Strait of Hormuz Unacceptable
11. CME Group — FedWatch Tool, April 29, 2026 FOMC Meeting Probabilities
12–13. Silver supply data sourced from the Silver Institute: World Silver Survey 2026 · Sixth Consecutive Annual Silver Market Deficit
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always consult a qualified financial adviser before making investment decisions.
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