Silver Prices Plummet Amid Rate Hike Expectations, Rising Inflation

Rising energy costs and intensifying inflation concerns have led to increased expectations of a rate hike by the Federal Reserve, sending money markets surging on Monday.

The CME FedWatch tool shows that there is now over a 92% chance of a rate hike, up from around 60% just a week prior. The sharp increase in rate hike expectations has put downward pressure on non-yielding precious metals like Silver.

The US Consumer Price Index (CPI) rose in August, with core inflation recording its largest gain in four months. The surge in CPI and rising Treasury yields have also contributed to the decline in Silver prices.