Silver Slips as Fed Hikes Rate Expectations to Near Certainty

Silver prices slipped below $66 an ounce on Tuesday as hawkish comments from Federal Reserve officials reinforced expectations of sustained higher interest rates in the US.

The Fed raised its policy rate by 25 basis points last week, marking its first move in three years. Chair Kevin Warsh hinted at further rate increases in the coming months, citing the need to combat inflation fueled by strong demand and rising energy prices.

Fed officials including St. Louis Fed President Alberto Musalem and Chicago Fed President Austan Goolsbee echoed this sentiment, emphasizing the importance of additional tightening measures.

The market is now pricing in a roughly 90% chance of another rate hike in December, according to the CME FedWatch Tool.