Silver Price Teeters on Edge of Fed-Induced Decline

The price of silver has been hovering near $66 an ounce as investors await this week's U.S. labor data, which may reshape the interest-rate outlook.

Rising Treasury yields and expectations for another Federal Reserve rate increase are challenging the metal that just entered September with renewed investor interest.

The immediate macro environment remains difficult for non-yielding precious metals, with markets assigning a 66% probability to a Fed rate increase in September and an 89% chance of one by December.

Australian Gold Fund describes the current pause as a contest between possible accumulation and another leg lower, which will depend on confirmation: holding near $66 alone does not establish a reversal, while a recovery through the recent highs would show that buyers are regaining control.