Silver Extends Gains on Easing Fed Hike Bets

Silver dropped toward $65 an ounce on Tuesday, reversing earlier gains amid a broad pullback across the metals market as investors locked in profits following a strong rally. Metals also faced pressure from rising oil prices, which kept inflationary risks and interest rate concerns in focus. The moves came as prospects for a new agreement between the US and Iran dimmed after President Donald Trump said he was not interested in extending the interim peace deal. Meanwhile, silver continued to find support from fading expectations for a Federal Reserve rate hike following a string of weak US economic data. Markets now expect the Fed to keep policy unchanged in September and are no longer fully pricing in a rate increase by year-end, unlike just a week ago. Silver also remained supported by solid industrial demand from the green energy transition, photovoltaic solar panels, electric vehicles, and artificial intelligence data center infrastructure.

Silver climbed above $66 an ounce on Tuesday, rising for the third straight session amid fading expectations for a Federal Reserve interest rate hike following a string of weak US economic data. Markets now expect the Fed to keep policy unchanged in September and are no longer fully pricing in a rate increase by year-end, unlike just a week ago. Investors now look ahead to the minutes of the Fed’s July meeting and comments from Chairman Kevin Warsh at the annual Jackson Hole symposium for further clues on the policy outlook. Meanwhile, traders remained wary of inflation risks as prospects for a new agreement between the US and Iran dimmed after President Donald Trump said he was not interested in extending the interim peace deal. Elsewhere, silver remains supported by solid industrial demand from the green energy transition, photovoltaic solar panels, electric vehicles, and artificial intelligence data center infrastructure.

Silver rose toward $66 an ounce on Monday, extending gains from the previous session as subdued US economic data reduced expectations for an imminent Federal Reserve interest rate hike. Data released last week pointed to tame US inflation, while consumer sentiment and retail sales weakened. Markets now see roughly a one-in-three chance of a Fed rate hike in September, down from nearly 50% before the data. Investors are now awaiting the FOMC’s latest meeting minutes and Fed Chair Kevin Warsh’s speech at the Jackson Hole symposium for further guidance. Meanwhile, tensions in the Middle East remain elevated after Israel launched fresh strikes on Lebanon over the weekend, while President Donald Trump is preparing new economic sanctions aimed at forcing Iran to surrender. Still, Middle Eastern producers are covertly moving millions of barrels of crude through the Strait of Hormuz, keeping oil prices in check and easing concerns about inflationary risks.