Silver Prices Hang in Balance Ahead of Fed Meeting
The silver market has experienced extraordinary turbulence over the past two weeks, with prices swinging wildly in response to changes in rate expectations. The metal closed Tuesday at $66.38 per ounce, down 0.7 percent on the day.
The volatility began on September 1, when rising global bond yields and a stronger dollar pushed the price down by more than 3 percent intraday to $64.46 per ounce. This was followed by a sharp sell-off on September 4, triggered by stronger-than-expected US employment data that reignited speculation about a more hawkish Federal Reserve stance.
The market has since recovered some of its losses, with prices stabilizing near $64 before climbing back toward $67 per ounce. However, the recent volatility has left traders bracing for the Federal Reserve's September 15-16 policy meeting, which is seen as a decisive catalyst for the metal's price action.
The jobs report that started it all showed stronger-than-expected US employment data, which reignited speculation about a more hawkish Fed stance. This was an unambiguous sell signal for a metal as sensitive to interest rates as silver.