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Silver slips near $66 as oil-driven inflation fears lift rate-hike bets
CME FedWatch data showed odds of a 25 basis point September rate hike rising to above 51%, up from 44.4% a day earlier.
Silver prices eased after two days of gains, trading around $66.00 per troy ounce in Asian hours on Tuesday, as market focus shifted to renewed interest rate-hike fears.
FXStreet linked the move to a combination of higher crude prices, which have revived inflation concerns, and uncertainty over a potential US-Iran deal aimed at ending the conflict and reopening the Strait of Hormuz. The resulting pressure pushed Treasury yields higher and raised expectations that the Federal Reserve could act sooner, even as the labor market shows signs of cooling.
The outlook for silver was also tied to upcoming inflation data this week, with CME FedWatch showing September 25 basis point hike odds above 51%, up from 44.4% the prior day. Still, the article pointed to possible support from industrial demand, including expanding solar panel production and grid upgrades, plus a reported surge in Chinese imports of silver-bearing ores.
FXStreet also noted that silver faces near-term headwinds after hitting seven-week highs on Monday as gold paused, with TD Securities describing “precious metals hit pause” and citing weaker US jobs data as something that questioned the likelihood of additional Fed hikes even while gold held its gains.
Latest closeGold $4,448.60 ▲2.5%|Silver $65.88 ▲4.0%|WTI crude $82.30 ▲5.3%