Oil Prices Fuel Silver Slide as Fed Rate Hike Odds Soar

Silver prices continue to decline due to rising oil prices and expectations of Federal Reserve rate hikes. The spot price has shed more than 5% in the previous session, trading near $60.90.

The recent surge in energy costs has rekindled concerns about inflation persistence, which could lead to further monetary tightening by the Fed. Market analysts note that investors assign a 70% probability to another 25-basis-point rate hike in October.

Rising U.S. Treasury yields have also contributed to the decline in silver prices, as they increase the attractiveness of dollar-denominated assets and make precious metals more susceptible to capital reallocation.