Silver Prices Fall Amid Fed Rate Hike Probability
Silver prices fell for the second straight day on Monday as markets reacted to the first half of the Federal Reserve's September 15-16 policy meeting. The XAG/USD price traded near $63.00 per troy ounce, down from a prior close of $64.50, due to persistent buying into a Federal Reserve that is tightening even as other developed countries begin to ease.
The dollar index climbed to 99.6 on Monday, a two-week high, reflecting the Fed's tightening message being transmitted into precious metal markets. The rate-hike narrative has reasserted itself as the dominant force in silver prices, which have retreated from the $66.92 peak reached on September 8.
The Federal Reserve's Summary of Economic Projections, set to be released alongside the rate announcement on Tuesday, will carry more information than the rate decision for silver traders. If the dots signal a second hike in November, the dollar strengthens further and XAG/USD faces a test below $62.