Commodities
Silver Price Slides Amid Fed Rate Hike Expectations
The Silver price (XAG/USD) is experiencing minor losses in early European trading on Monday, hovering above the key support area of $63.00.
This comes as market expectations for a rate hike by the Federal Reserve (Fed) later this week are pushing the US Dollar higher and posing headwinds for precious metals.
The recent Consumer Price Index (CPI) figures, which beat expectations, have cemented hopes that the Fed will raise interest rates by 25 basis points on Wednesday or risk a crisis of credibility.
Beyond the economic indicators, geopolitical tensions in the Middle East are also contributing to elevated Oil prices and setting an unfavorable context for precious metals.