Silver Extends Fall on Bond Jitters

Silver fell below $63 an ounce on Wednesday, extending losses from the previous session, pressured by elevated global bond yields amid growing fiscal concerns and persistent inflationary pressures. The 30-year US Treasury yield reached a 19-year high this week, while sovereign yields across other major economies also climbed to their highest levels in decades. The precious metal also faced pressure from rising oil prices as the US and Iran showed little indication of reaching an agreement to end the conflict and reopen the Strait of Hormuz in the near term. President Donald Trump said there were no ongoing talks with Tehran, while Iranian forces have intensified attacks on shipping in the Strait of Hormuz. Investors now await minutes from the Federal Reserve’s July meeting and remarks from Chairman Kevin Warsh at the annual Jackson Hole symposium for fresh clues on the monetary policy outlook.

Silver dropped toward $64 an ounce on Tuesday, reversing earlier gains amid a broad pullback across the metals market as global bond yields surged to multi-year highs on mounting concerns over massive government spending and persistent inflationary pressures. Metals also faced pressure from rising oil prices, which kept inflationary risks and interest rate concerns in focus. 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.