Silver Price Tumbles as Fed Hike Expectations Rise
The price of Silver (XAG/USD) remains under pressure, hovering around $60.70 during the Asian trading session on Tuesday. Financial markets remain confident that the Federal Reserve will deliver more interest rate hikes this year, which would boost yields on interest-bearing assets and diminish the appeal of non-yielding assets like Silver.
According to TD Securities, there is a 70% chance that the Fed will hike interest rates in the October policy meeting. The US Job Openings data for August is expected to be published at 14:00 GMT, showing that employers posted 7.23 million fresh jobs, marginally lower than 7.271 million in July.
The CME FedWatch tool shows a high probability of interest rate hikes this year, which would weigh on the price of Silver. The metal is also under pressure due to its safe-haven status and geopolitical tensions between the US and Iran, which may lead to further instability in the market.