Commodities
Silver Prices Rebound Amid Hawkish Rate Hike Expectations
Silver prices rebounded on Friday after plummeting over 4% in the previous session. The precious metal was trading around $57.60 per troy ounce during Asian trading hours, despite remaining under pressure from changing expectations around US monetary policy.
The rise in oil prices linked to growing tensions in the Middle East is strengthening market expectations for potential Federal Reserve rate hikes, which could weigh on silver. As a non-yielding asset, silver becomes less attractive when interest rates are expected to rise.
According to the CME FedWatch tool, markets are pricing in an estimated 35.8% probability of a Federal Reserve rate hike this month and an 82.1% probability of at least a quarter-point rate hike in September.