Silver Bounces Back Amid Fed Rate Hike Worries

Silver prices have rebounded from significant losses as markets assess the impact of Federal Reserve policy on the precious metal.

The price of silver rose to around $57.60 per troy ounce during Asian trading hours, attempting to recover from a decline of over 4% in the previous session.

However, this modest recovery is under pressure due to changing expectations around US monetary policy and higher oil prices linked to rising tensions in the Middle East.

The potential for Federal Reserve rate hikes is weighing on silver, as the metal does not provide a yield, making it less attractive when interest rates rise.

Market expectations are currently pricing in an estimated 35.8% probability of a Federal Reserve rate hike this month and an 82.1% probability of at least a quarter-point rate hike in September.