Fed Tightening Trumps Oil Shock for Silver

Silver prices fell 4.5% to $61.39 per ounce on September 28, as the US rejected an Iranian peace proposal and Brent crude returned above $100 a barrel.

The decline in silver was largely driven by expectations of further interest rate hikes by the Federal Reserve, rather than the impact of rising oil prices on inflation.

According to CME's FedWatch Tool, there is now a 70.3% chance of an October increase and 94% for December, leading to higher Treasury yields and a wider discount for silver compared to its September 25 close of $64.30.