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Silver rises above $66 as Fed rate-hike odds cool

Silver is rebounding from the $63.50 area after softer US data shifted bets toward no September rate change, with CME FedWatch showing about a 70% chance rates stay unchanged.

Reported · Written up by our desk · Precious Metals

Silver extended its advance Monday, trading around $66.30, up 2.47%, as expectations for the Federal Reserve to raise rates again in September faded. FXStreet attributed the move largely to a weakening US dollar and a broader pullback in rate-hike expectations following a run of disappointing US economic releases. US Retail Sales fell 0.6% in July, versus a 0.1% increase expected, and the data added to signals of a slowdown seen across CPI and PPI, along with weak July Nonfarm Payrolls. Markets have repriced the outlook, with the CME FedWatch tool indicating about a 70% chance the Fed will leave interest rates unchanged at its September meeting, up from 48% a week earlier. That shift has weighed on the US Dollar Index, which was around 99.50 after touching 99.30, its lowest level since June 5. Traders are also watching potential inflation headwinds from geopolitical tensions in the Middle East, particularly around the Strait of Hormuz, where persistent risks to energy supplies have kept oil prices elevated. Attention now turns to the Minutes of the July FOMC meeting, due Wednesday, which could influence whether the decline in rate-hike expectations persists, a key near-term driver for silver.

Latest closeSilver $64.83 ▼0.1%|Dollar index 99.64 ▼0.3%

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