Silver prices dipped to approximately $60.7 per ounce on Monday, as the US dollar strengthened and investors braced for key economic reports that could influence the Federal Reserve's interest rate decisions.
The dollar remained near its highest level in 18 months, bolstered by rising Middle East tensions and caution ahead of upcoming US inflation and retail sales data. Stronger-than-anticipated figures could boost expectations of tighter monetary policy, which would likely increase Treasury yields and further weigh on silver.
Markets have reduced the likelihood of a Fed rate hike this month to less than 20%, but the probability of a hike by December stands at 85%, according to CME’s FedWatch tool. Investors are also keeping an eye on the IMF-World Bank annual meetings for insights from global central bankers on future monetary policy.