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Silver stays below $61 as the US dollar strengthens

XAG/USD was around $60.8 after failing to break above $61.0, leaving silver set for an 8.5% September decline.

Reported · Written up by our desk · Major Pairs

Silver prices in dollar terms, tracked by XAG/USD, were practically flat on Tuesday at around $60.8, with the metal unable to gain follow-through above $61.0, FXStreet reported.

The outlet said silver is pressing lower because precious metals are struggling as the US dollar rises alongside long-term yields, with markets pricing in at least one more Federal Reserve rate hike in Q4.

FXStreet noted the US Dollar Index was at 101.37, near a more than one year high of 101.49, and linked the dollar strength to hawkish Fed repricing in September.

BNY Markets analyst John Velis, as cited by FXStreet, argued that yields have been driven not by long-term inflation itself, but by market perceptions of central bank credibility and expectations for a forceful policy response, which in turn has weighed on silver's performance.

Latest closeSilver $60.95 ▼5.1%|Dollar index 101.25 ▲0.3%

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