Silver Prices Plummet Amid Iran Tensions and Fed Rate Hike Odds
Silver prices dropped to nearly $62.00 per troy ounce on Monday after posting modest gains in the previous day, with traders seeking fresh catalysts amidst ongoing geopolitical tensions between the US and Iran.
Stalled negotiations between the two countries have kept oil prices elevated, leading to expectations of further monetary tightening by the Federal Reserve to curb persistent inflation. The Fed's recent decision to raise its target funds rate range has bolstered the US dollar's strength against other currencies.
The market is now pricing in a 65.9% probability of another benchmark interest rate hike at the October Fed meeting, up from 57.6% a week ago and 9.4% a month ago.
Market participants are shifting their focus to key economic indicators scheduled for release this week, particularly US employment figures and the Fed's preferred inflation metric.