Silver Tumbles as Hawkish Fed Signals Overwhelm Lower Oil Prices

Silver prices fell by 1.66% to ₹235,895 as comments from Federal Reserve officials emphasizing inflation risks outweighed the impact of declining oil prices on inflation expectations.

Tom Barkin, Richmond Fed President, warned that inflationary shocks could take time to fade, while Boston Fed President Susan Collins backed last week's rate hike amid concerns that inflation could remain above 2%.

Austan Goolsbee, Chicago Fed President, highlighted strong demand, energy costs, tariffs, and supply shocks as inflationary risks, and Neel Kashkari, Minneapolis Fed President, said elevated inflation remains a key concern.

The CME FedWatch Tool indicates an almost 90% probability of at least one further Fed rate hike this year, which keeps pressure on non-yielding precious metals.