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Silver rebounds near $66.70 as Fed tightening bets climb
FedWatch data show odds of a September 25 bps hike near 61%, up from about 35% before Kevin Warsh’s Jackson Hole remarks.
Silver (XAG/USD) rose on Monday, trading around $66.70 and up 0.40% on the day, as investors digested shifting expectations around Federal Reserve policy, according to FXStreet.
FXStreet noted that Fed Chair Kevin Warsh struck a more hawkish tone at the Jackson Hole Symposium, saying policymakers still have “work to do” if underlying inflation pressure does not ease. That prompted markets to raise their tightening outlook, with the CME FedWatch tool indicating around a 61% chance of a 25 basis point hike at the September meeting, versus roughly 35% before Warsh’s speech.
The prospect of higher rates for longer could weigh on silver because the metal offers no yield, though a modest pullback in the US dollar helped support the rebound. FXStreet also pointed to Middle East tensions, including renewed US and Iran strikes after a fragile truce, which can boost demand for safe haven assets.
Looking ahead, FXStreet said attention turns to US economic data including the ISM surveys and Friday’s August Nonfarm Payrolls, while it also highlighted that the July JOLTS report could add context on a slowdown in job growth ahead of the main labor-market figures.
Latest closeSilver $67.09 ▼3.4%