Silver Plunges 5% Amid Rising Oil Prices and Fed Rate Fears

Silver prices plummeted by 5% to $61 per ounce on September 28 as tensions between the US and Iran escalated, causing a surge in crude oil prices and US Treasury yields.

The sudden drop also affected gold prices, which fell by 3%. Ashish Rajodiya, Head of Commodities at PL Capital, noted that higher oil prices have reignited inflation concerns, reinforcing expectations that the Federal Reserve will maintain a hawkish stance.

According to CME FedWatch data, over 68% of market participants now expect the Fed to raise interest rates by 25 basis points in October, further cementing the anticipation of a rate hike.