Silver ETFs Plummet Over 3% Amid Rising Fed Rate Hike Bets

Silver exchange-traded funds (ETFs) suffered significant losses on September 11, plummeting over 3% as global silver prices extended their decline. This sell-off was triggered by a sharp repricing of US interest-rate expectations.

The SBI Silver ETF fell to Rs 221.77, down 3.2%, while ICICI Prudential Silver ETF and Nippon India Silver ETF declined 3.1% each to Rs 226.16 and Rs 216.59 respectively. Tata Silver ETF also dropped by 3.1% to Rs 21.98.

The weakness in precious metals stems from a sharp increase in US interest-rate expectations, following stronger-than-expected producer inflation and rising Treasury yields. The Federal Reserve's potential rate hike next week has significantly contributed to this market volatility.