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Silver slips below $69 as traders look to Fed Chair speech
Investors are positioning for another potential rate hike later this year, with CME FedWatch Tool pricing a 74% chance of a December increase.
Silver prices fell below $69 per troy ounce as investors turned cautious ahead of Federal Reserve Chair Kevin Warsh’s upcoming speech at the Jackson Hole symposium, where markets are seeking signals on the future path of US interest rates, FXStreet reported.
The drop follows stronger-than-expected US inflation data earlier in the week, which has reinforced expectations for another rate hike before year end. CME FedWatch Tool currently shows a 74% probability of a December increase, while it also implies a 65% chance that rates will be unchanged at the Fed’s September meeting.
FXStreet also pointed to potential support for silver from the ongoing “debasement trade,” as concerns about a potential US debt crisis and long-term weakness in the US dollar continue to grow, partly tied to an expansion of the US Treasury’s debt buyback program.
TD Securities said trend-following flows across the precious metals complex remain supportive, noting that CTA positioning in precious metals is holding firm and that silver and platinum pricing simulations suggest an increased likelihood of additional buying into the near term.
Latest closeSilver $68.61 ▼0.0%|Platinum $1,850.60 ▼0.1%