Silver Price Slumps as Hawkish Fed Rhetoric and Oil Prices Stifle Bulls

The silver price (XAG/USD) remains under pressure as traders anticipate an imminent Federal Reserve interest rate hike. According to the US Bureau of Labor Statistics, August Nonfarm Payrolls rose by 162,000, significantly outperforming the 56,000 forecast.

The stronger-than-expected employment data fueled expectations of tighter monetary policy, with the CME FedWatch tool indicating a 58.3% probability of a 25-basis-point Fed rate increase in September.

Fed's Hammack delivered a notably more hawkish message, stating that Fed policy is 'not restrictive' and that inflation is 'too high.'

Rising crude oil prices have stoked fears of rekindled inflationary pressures following a geopolitical escalation between the US and Iran over the weekend.