Silver Falls to December-Lows

Silver prices fell about 5% to $59 per ounce on Wednesday, their lowest level since December, tracking broader weakness across the precious metals complex. The decline was driven by a stronger US dollar and growing expectations that the Fed will maintain a hawkish policy stance, prompting traders to increase bets on an interest-rate hike later this year. Markets currently assign a roughly 68% probability of a Fed rate increase in September, up from 29% a week ago. Silver and other precious metals also came under additional selling pressure as a sharp decline in US technology stocks led some investors to reduce bullion holdings to help offset losses elsewhere in their portfolios. Silver is now down about 13% year-to-date and nearly 47% below its record high reached in January, before the outbreak of the conflict with Iran.

Silver decreased 5.04% to 58.45 USD/t.oz

Silver traded near $61 an ounce on Wednesday, hovering at six-month lows as expectations of tighter Federal Reserve policy outweighed support from the interim US-Iran peace agreement, which helped ease inflation concerns. At its latest policy meeting, Fed officials left interest rates unchanged but indicated increasing support for future rate hikes, while new Fed Chair Kevin Warsh reaffirmed his commitment to restoring price stability. Meanwhile, progress in negotiations between Washington and Tehran encouraged a rise in traffic through the Strait of Hormuz, easing pressure on global energy supplies and reducing inflation risks. Silver and other metals also faced additional selling pressure as a sharp decline in US technology stocks prompted investors to trim bullion positions to offset losses elsewhere in their portfolios.