Silver Rebounds, But Fed Hike Expectations Remain a Headwind

Silver prices rebounded on Friday after suffering losses of more than 4% in the previous trading session. The precious metal was trading around $57.60 per troy ounce during Asian trading hours.

The recovery is modest, but silver remains under pressure from changing expectations around US monetary policy. Higher oil prices linked to rising tensions in the Middle East are strengthening market expectations for potential Federal Reserve rate hikes.

Rising interest rates could weigh on silver because it does not provide a yield, making it potentially less attractive when expectations for interest rates rise.