Home›Forex›Major Pairs›Silver plunges as US yields stay elevated and rate hik…

Silver plunges as US yields stay elevated and rate hike bets rise

Silver dropped 4.5% on the day to about $61.4, with money markets pricing roughly a 68% chance of another Fed hike in October.

Reported · Written up by our desk · Major Pairs

Silver fell sharply on Monday, down 4.5% to around $61.40, as elevated United States Treasury yields and a firmer US dollar weighed on the precious metal, according to FXStreet.

The outlet said expectations for additional interest rate hikes have increased because investors are concerned that higher oil prices and supply disruptions could keep US inflation risk elevated, leaving the Federal Reserve more restrictive for longer.

FXStreet added that money markets are pricing about a 68% chance of another Fed rate increase at the October meeting, following a September hike and more hawkish comments from Fed officials.

With the 10-year Treasury yield near its highest level in nearly two decades, FXStreet noted the opportunity cost of holding non-yielding assets increased, contributing to the sharp decline in silver.

Latest closeSilver $64.71 ▲2.0%

More like this

Sources