Silver Price Tumbles Amid Fed Rate Hike Odds and Geopolitical Uncertainty

The silver price (XAG/USD) plummeted nearly 3.5% on Monday, trading around $62.00 per troy ounce during Asian hours.

The decline comes as investors seek fresh catalysts and remain cautious due to stalled negotiations between the US and Iran, which has kept oil prices elevated.

Market sentiment remains heavily tied to Middle Eastern geopolitical developments following US President Donald Trump's rejection of Iran's latest proposal to reopen the Strait of Hormuz.

The Federal Reserve's decision to raise its target funds rate range has bolstered the US dollar's strength against other currencies, with money markets now pricing in a 65.9% probability of another benchmark interest rate hike at the October Fed meeting.