Silver Prices Hold Near $66 Amid Fed Rate Hike Expectations

Silver prices hovered near $66 an ounce on Tuesday as investors weighed the impact of rising Treasury yields and expectations for another Federal Reserve rate increase.

The spot price slipped 0.2% to $66.42 by 0432 GMT, leaving traders focused on whether the $66 area can absorb selling before this week's U.S. labor data reshapes the interest-rate outlook.

Markets are assigning a 66% probability to a Fed rate increase in September and an 89% chance of one by December following Chair Kevin Warsh's hawkish Jackson Hole remarks, which put pressure on non-yielding precious metals like silver.

The Australian Gold Fund described the current pause as a contest between possible accumulation and another leg lower, with buyers needing to prevent a sustained breakdown beneath the recent floor and then reclaim the $66.80-$67 region before the immediate structure begins to improve materially.