Silver Prices Rebound as Fed Rate Hike Expectations Rise

Silver prices have rebounded from their sharp losses in the previous trading session, but remain under pressure due to changing expectations around US monetary policy.

The precious metal was trading at $57.60 per troy ounce during Asian trading hours, attempting to recover some ground after its significant decline.

However, higher oil prices linked to rising tensions in the Middle East are strengthening market expectations for potential Federal Reserve rate hikes, which could weigh on silver.

The metal does not provide a yield, making it less attractive when expectations for interest rates rise. Markets are currently 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.