Silver Weighed Down by Rate Hike Expectations

Silver prices have been under pressure due to expectations of rate hikes from major central banks. The precious metal strengthened above $66 an ounce on Tuesday but remains vulnerable to further declines.

The US Federal Reserve is seen as likely to raise interest rates next week, with markets pricing in a 60% probability of a 25-basis-point hike after strong jobs data was released. The European Central Bank and Bank of Japan are also expected to follow suit this month, fueling inflation concerns.

The ongoing conflict between the US and Iran has pushed oil prices higher, further exacerbating inflation worries. Meanwhile, investors continue to monitor central banks' purchasing activities and the 'debasement trade', which remains an important market driver for precious metals.