Silver Drops as Rate Hike Fears Weigh on Markets

2026-06-01 13:42 By Joana Ferreira 1 min. read

Silver reversed early gains to trade below $75 an ounce in the first June session, remaining far from the two-month peak of $89.4 seen in mid-May.

Rising oil prices, spurred by fresh Iran-US strikes and Iran’s suspension of communications with the US over Israel’s attacks on Lebanon, fueled inflation concerns and reinforced expectations of prolonged higher interest rates.

Over the weekend, both sides exchanged proposals to revise a draft deal aimed at extending the ceasefire and reopening the Strait of Hormuz, though meaningful progress remains uncertain.

Traders now see a roughly 60% chance of at least one US rate hike by year-end. Attention also shifts to this week’s US jobs data and upcoming remarks from Federal Reserve officials.



News Stream
Silver is down by 5%
Silver decreased 5% to 61.8 USD/t.oz
2026-06-23
Silver Remains Under Pressure
Silver fell toward $63 an ounce on Tuesday, extending recent losses as firm expectations for Federal Reserve interest rate hikes outweighed optimism surrounding ongoing US-Iran peace negotiations. Both Deutsche Bank and BofA Global Research have revised their forecasts to include a rate increase in September. Investors are now focused on this week’s PCE report, which contains the Fed’s preferred inflation gauge and is expected to offer fresh insight into underlying price pressures. Meanwhile, Washington granted Iran a 60-day license to sell oil on international markets, boosting expectations of a faster recovery in global supply. Shipping through the Strait of Hormuz has also increased, with producers such as Kuwait and the United Arab Emirates finding alternative export routes, while Iran shipped more than 30 million barrels over the past week.
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Silver traded near $65 an ounce on Tuesday, halting a recent decline as early signs of progress in ongoing peace talks between the US and Iran helped ease concerns about inflation. In a significant development, Washington issued Tehran a 60-day license to sell oil on international markets, fueling expectations of a faster recovery in global supply. Shipping activity through the Strait of Hormuz has also increased, with producers such as Kuwait and the United Arab Emirates finding alternative ways to export energy, while Iran shipped more than 30 million barrels over the past week. Precious metals have come under constant pressure since the Middle East conflict erupted in late February, as disruptions to energy flows through Hormuz drove oil prices higher and reinforced expectations that central banks raise interest rates to contain inflation.
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