Silver Price Slumps as US Dollar Surges Amid Fed Rate Hike Expectations

The silver price has been struggling to break above $61.00 as the US Dollar surges, fueled by long-term yields at multi-decade highs and markets pricing in another Federal Reserve rate hike in Q4.

According to John Velis, analyst at BNY Markets, it's not inflation driving yields higher but rather perceptions of central bank credibility - markets are expecting the Fed (and other central banks) to raise rates in response to rising inflation.

The US Dollar Index has hit its highest level in over a year, trading at 101.37, and has rallied nearly 2% in September, which explains precious metals' decline due to their negative correlation with the Greenback.