Fed Hike Expectations Weigh on Silver Rebound

Silver prices have recovered from sharp losses of over 4% in the previous trading session to trade around $57.60 per troy ounce during Asian hours.

The rebound is attributed to a combination of factors, including the stabilization of oil prices due to geopolitical tensions and the assessment of Federal Reserve policy.

However, expectations for higher interest rates remain a significant headwind for silver, as it does not provide a yield, making it less attractive when rate hikes are anticipated.

The CME FedWatch tool indicates that money markets are pricing in an 82.1% probability of at least a quarter-point rate hike in September and a 35.8% probability of a hike this month.