Silver Tumbles Below $65 as Higher Interest Rates Loom

The price of silver (XAG/USD) has plummeted below $65 due to expectations of higher interest rates from the Federal Reserve. This narrative is driven by demand-driven inflation, which is seen as a long-term concern for policymakers.

On Monday, Chicago Fed President Austan Goolsbee stated that strong demand may be contributing to inflation along with energy and supply shocks. Minneapolis Fed Bank President Neel Kashkari also emphasized the need to address high inflation, citing hot price pressures fueled by elevated oil prices.

The CME FedWatch tool indicates a nearly 90% chance of at least one interest rate hike this year.