Hawkish Comments Spark Silver Price Decline as Treasury Yields Surge

Silver prices fell by over 1% on Thursday as investors responded to hawkish comments from New York Fed President John Williams.

Williams stated that another interest-rate increase this year is 'reasonable' and emphasized the need to bring inflation back to the central bank's 2% target promptly.

This reinforced market expectations of further rate hikes, with investors now assigning a roughly 71% chance to another rate hike at the October meeting, up from around 55% a week earlier.

The shift in interest-rate expectations sent US Treasury yields sharply higher, with the benchmark 10-year US Treasury yield rising toward 5.15%, its highest level since 2007.