Silver Posts Monthly Loss as Rate Hike Expectations Weigh

2026-07-31 14:53 By Joana Ferreira 1 min. read

Silver fell more than 2% to around $57.5 an ounce on Friday, ending July down over 1% as the US dollar rebounded from a more than one-month low and expectations for tighter Federal Reserve policy outweighed support from softer US inflation data and unchanged interest rates.

Markets currently see about a 65% chance of a Fed rate hike in September, with another increase expected by June 2027.

While Fed Chair Kevin Warsh reaffirmed the central bank's commitment to lowering inflation without signaling an imminent hike, the three policymakers who dissented at this week's meeting reiterated on Friday that further tightening is needed.

Meanwhile, renewed US strikes on Iranian targets in response to Tehran's attacks on American assets reduced hopes for a diplomatic breakthrough.

Since the conflict erupted in late February, higher oil prices have fueled inflation concerns and reinforced expectations for higher interest rates, weighing on precious metals.



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Silver Posts Monthly Loss as Rate Hike Expectations Weigh
Silver fell more than 2% to around $57.5 an ounce on Friday, ending July down over 1% as the US dollar rebounded from a more than one-month low and expectations for tighter Federal Reserve policy outweighed support from softer US inflation data and unchanged interest rates. Markets currently see about a 65% chance of a Fed rate hike in September, with another increase expected by June 2027. While Fed Chair Kevin Warsh reaffirmed the central bank's commitment to lowering inflation without signaling an imminent hike, the three policymakers who dissented at this week's meeting reiterated on Friday that further tightening is needed. Meanwhile, renewed US strikes on Iranian targets in response to Tehran's attacks on American assets reduced hopes for a diplomatic breakthrough. Since the conflict erupted in late February, higher oil prices have fueled inflation concerns and reinforced expectations for higher interest rates, weighing on precious metals.
2026-07-31
Silver Set to End Month Little Changed
Silver fell toward $58 an ounce on Friday, snapping a two-session winning streak, but was still on track to end July little changed after a more than 20% decline in June. The precious metal found support this week after the US Federal Reserve left interest rates unchanged despite mounting inflationary pressures stemming from renewed hostilities in the Middle East. However, expectations for tighter monetary policy continued to cap gains, with markets currently pricing in about a 63% chance of a Fed rate hike in September. Meanwhile, the US military launched fresh strikes on Iranian targets in retaliation for Tehran’s attacks on US assets across the Middle East, reducing the likelihood of any near-term diplomatic agreement. Precious metals have come under constant pressure since the US-Iran war erupted in late February, as surging oil prices fueled inflation concerns and strengthened expectations for tighter monetary policy.
2026-07-31
Silver Holds Gains as Dollar Weakens
Silver traded around $59 an ounce on Friday after rising for two straight sessions, supported by a sharp decline in the US dollar as Japan is suspected to have intervened in the currency market once again to strengthen the yen. The precious metal also drew support this week after the Federal Reserve left interest rates unchanged despite mounting inflationary pressures stemming from renewed hostilities in the Middle East. However, expectations for tighter monetary policy continued to limit further gains, with markets currently pricing in about a 63% chance of a Fed rate hike in September. Meanwhile, the US military launched fresh strikes on Iranian targets in retaliation for Tehran’s attacks on US assets across the Middle East, reducing the likelihood of any near-term diplomatic agreement. Silver is also on track to end the month with a small gain after tumbling more than 20% in June.
2026-07-31