Forex
Silver Rebounds, But Fed Rate Hikes Cast Shadow Over Precious Metal
Silver prices rebounded on Friday after a sharp decline of more than 4% in the previous session, but the precious metal remains under pressure from rising expectations for Federal Reserve rate hikes.
The CME FedWatch tool shows that money markets are pricing in an estimated 35.8% probability of a Federal Reserve rate hike this month and an 82.1% probability of at least a quarter-point rate hike in September.
The rise in oil prices due to tensions in the Middle East is contributing to stronger expectations for higher interest rates, which could weigh on silver's price as it does not provide a yield.