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Silver rebounds to near $67.50 as US dollar softens
Silver rose 2.6% on the day to about $67.50, even as higher US rate expectations pressured precious metals.
Silver prices rebounded on Wednesday, trading around $67.50, up 2.6% for the day, as broad weakness in the US dollar helped support the metal, according to FXStreet.
The bounce is facing headwinds from renewed pressure on precious metals, with surging energy prices reviving inflation concerns and strengthening expectations for higher US interest rates. The US dollar index fell about 0.25% to near 98.61, close to its lowest level since August 21, but the strength in oil prices offset some of the dollar-driven support.
FXStreet also pointed to geopolitical tensions involving the United States and Iran as a driver of oil, including a US statement that it destroyed five Iranian oil tankers after an attempted attack on a US Navy warship. With risks around the Strait of Hormuz remaining elevated, the prospect of persistently higher energy costs could keep central banks tighter, weighing on non-yielding silver.
Rate expectations are also playing a direct role: markets were pricing in about a 62% chance of a 25 basis point Fed hike at the September 15-16 meeting, while the benchmark 10-year Treasury yield traded around 4.80%, near its highest since November 2023. On the data front, FXStreet noted ADP showed US private employers added an average of 12,000 jobs per week over the period ending August 22, and investors are looking ahead to Thursday's PPI and Friday's CPI.
Latest closeSilver $66.22 ▲0.3%|Dollar index 98.84 ▼0.3%