Silver Tumbles Near $60 as Fed Rate Hike Expectations Persist
Silver prices remain under pressure as traders reassess their expectations of a US Federal Reserve rate hike following softer-than-expected US PCE inflation data. The XAG/USD pair trades around $60.38, poised to close September with a loss of nearly 9%.
The white metal briefly strengthened after the inflation data pushed the US Dollar and Treasury yields lower. However, stronger Gross Domestic Product (GDP) and ADP employment figures showed that the US economy remains resilient, keeping expectations alive for a potential rate hike later this year.
Hawkish Fed expectations continue to support the US Dollar and weigh on non-yielding assets like Silver, which tend to perform better when borrowing costs are low. Traders await key economic indicators, including the US ISM Manufacturing PMI on Thursday and the Nonfarm Payrolls report on Friday, for fresh clues about the Fed's policy path.