Silver Slumps Amid Geopolitical Volatility

Silver prices have been volatile in recent days, trading near $57.50 as a result of a combination of factors unrelated to its fundamental value.

The confluence of rising oil prices, increased US Treasury yields, and a strengthening dollar pushed the metal down by 3.46% on July 23, with a brief intraday dip to $57.35 the following day.

This geopolitical turmoil has both positive and negative effects on precious metals: it can drive safe-haven demand but also increases inflation fears that bolster expectations of higher interest rates from the Federal Reserve.

The CME FedWatch tool now prices in a 35.8% probability of a July hike and an 82.1% chance of a September move, up from roughly 52% a week earlier.