Silver Prices Retreat Amid Inflation Concerns and Rising Oil Prices

Silver prices retreated on Tuesday after failing to hold onto earlier gains, trading around $66. The metal had reached an intraday high near $67.19 but gave back some of those advances as rising oil prices added to concerns about inflation and central bank policy.

The strengthening expectations for a tighter Federal Reserve (Fed) policy have weighed on Silver, with the CME FedWatch tool showing around a 60% chance of a 25-basis-point rate hike next week. Higher interest rates tend to suppress Silver because it offers no yield.

However, the downside in Silver appears limited as the US Dollar stays under pressure. The US Dollar Index (DXY) traded around 98.82 after briefly reclaiming 99, hovering near its lowest level in more than two weeks.