Tightening Expectations Weigh Down Silver Prices

Silver prices remained under pressure on Tuesday, holding within a consolidation zone. The global economic environment is challenging for non-yielding assets like silver, as expectations of tighter monetary policy across major economies keep bond yields elevated.

Resilient economic activity and inflation concerns are reinforcing central bank policy tightening bets. In the US, markets assign around a 60% probability to a Federal Reserve interest rate increase in September, supporting Treasury yields and the dollar at the expense of silver.

The European Central Bank is expected to raise interest rates on Thursday, with another possible increase before the end of the year. Similarly, stronger-than-expected economic data has reinforced expectations of further tightening by the Bank of Japan.