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Silver tumbles 5% as a stronger dollar and higher yields weigh

XAG/USD was last around $61.1, while the US 10-year Treasury yield climbed to 5.27%, its highest since 2007.

Reported · Written up by our desk · Major Pairs

Silver prices slid about 5% on Monday, with XAG/USD dropping to its lowest level since early August, according to FXStreet.

FXStreet attributed the move to a stronger US Dollar and higher US Treasury yields, noting silver is a non-yielding metal and faces rising opportunity costs when rates increase.

The outlet also pointed to expectations of further Federal Reserve rate hikes, with markets pricing a 70% chance of another hike in October after the central bank raised rates by 25 basis points at its September 15-16 meeting.

FXStreet said traders are watching upcoming US data, including the PCE inflation report on Wednesday, ISM Manufacturing PMI on Thursday, and Nonfarm Payrolls on Friday, as XAG/USD remains below key moving averages.

Latest closeSilver $64.71 ▲2.0%

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