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Silver holds gains near $57.60 as Fed hike odds rise

CME FedWatch shows markets pricing about a 35.8% chance of a Fed hike this month, with an 82.1% probability of at least a quarter-point hike in September.

Reported · Written up by our desk · Major Pairs

Silver prices (XAG/USD) edged higher after the prior session’s drop of more than 4%, trading around $57.60 per troy ounce during Asian hours on Friday, FXStreet reports.

The publication links the price action to rising odds of Federal Reserve rate hikes, which can weigh on non-yielding assets like silver. According to CME FedWatch, markets are pricing roughly a 35.8% chance of a hike this month and an 82.1% probability of at least a quarter-point increase in September.

Geopolitical risk is also in focus, with higher oil prices tied to Middle East tensions after reports that Yemen’s Iran-backed Houthi group attacked two Saudi oil tankers in the Red Sea. FXStreet also points to the US conducting its 13th consecutive night of military strikes on Iran and President Donald Trump warning of major military punishment for the Houthis and Iran if attacks continue, which it says has added uncertainty for markets.

Latest closeSilver $57.84 ▼3.6%

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