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Silver holds near $59.70 as markets price more Fed tightening
CME FedWatch shows markets pricing over a 71% chance of a 25 basis point hike in September, even as silver advances for a fourth straight day.
Silver prices rose for the fourth consecutive day, trading around $59.70 per troy ounce during Asian hours Wednesday, even as rate hike expectations increased, FXStreet reported.
The move reflected flows into tangible safe haven assets amid escalating geopolitical tensions, with institutional investors possibly shifting out of equities.
FXStreet said the metal’s upside may be capped because Middle East tensions and higher oil prices are stoking inflation fears, keeping interest rate expectations elevated.
On monetary policy, the report noted that Fed Chair Warsh has emphasized inflation as a key concern and that the Fed is in its usual blackout period ahead of next week’s FOMC meeting, where the federal funds rate is widely expected to remain unchanged. It added that the CME FedWatch Tool indicates markets are pricing in more than 71% odds of at least a 25 basis point hike at the September meeting.
Latest closeSilver $55.72 ▼2.4%