Silver Prices Tumble to $61 as Dollar and Fed Rate Hikes Weigh

Spot silver prices have been weighed down by the strong U.S. dollar and expectations of Federal Reserve rate hikes, falling back to around $61.00 after a brief rebound.

The recent price action has been influenced by shifts in the U.S. dollar and interest-rate expectations, with the dollar index remaining elevated and Fed officials signaling further policy tightening.

This has kept U.S. Treasury yields high, imposing substantial holding-cost pressures on silver, which does not yield interest.

Market participants are awaiting the release of key U.S. economic data, including the PCE price index and the final estimate for second-quarter GDP.

If inflation comes in above market expectations, it could reinforce bets that the Fed will maintain a restrictive stance or even hike rates further, pushing the dollar and Treasury yields higher and exerting additional downward pressure on silver.