Silver Prices Plunge Amid Fading Hopes for Rate Cut

Silver prices dropped by 0.88% to ₹2,25,450 as uncertainty surrounding US-Iran negotiations kept oil prices high and fueled inflation concerns.

The market is pricing around a 70% probability of a Fed rate hike in October, with New York Fed President John Williams stating that another rate increase by year-end is reasonable and emphasizing the need to return inflation to target.

Cleveland Fed President Beth Hammack highlighted elevated inflation and government debt concerns as factors behind higher long-term yields, while Richmond Fed President Tom Barkin noted that inflation pressures are spreading beyond energy and tariff-related shocks.