Silver Prices Plunge Amid Rate Hike Expectations and Inflation Concerns

Silver prices are under pressure as inflation concerns and rate hike expectations build. The metal is currently trading near $63.20 per troy ounce, down for a second consecutive session.

The US Federal Reserve's potential rate hike has increased to above 92% following the August Consumer Price Index (CPI) data release, which showed core inflation registering its strongest monthly increase in four months. This shift in monetary policy expectations is intensifying pressure on non-yielding precious metals such as Silver.

The US 10-year Treasury yield is also moving toward 5%, driven by broader inflation concerns and fiscal anxieties. Rising yields increase the opportunity cost of holding assets that do not generate income, adding downside pressure on Silver.