Silver Falls as Fed Rate-Hike Bets Weigh on Prices

2026-09-25 13:55 By Joana Ferreira 1 min. read

Silver prices traded around $64 an ounce on Friday, down more than 3% for the week, as rising US Treasury yields and growing expectations of further Federal Reserve rate hikes weighed on the metal.

Meanwhile, oil prices paused a two-day rally as US and Iranian negotiators in New York reportedly explored a deal that could see Tehran reopen the Strait of Hormuz and Washington ease its economic blockade of Iran.

However, inflationary pressures remain elevated, while a series of stronger-than-expected economic data releases, including PMI figures showing US business activity grew at its fastest pace in five years in September, prompted markets to price in further Fed tightening.

The US central bank delivered its first rate hike in three years last week and signaled that further increases could follow.

Traders are pricing in a nearly 70% chance of a hike in October and a 95% probability of another increase in December, according to the CME FedWatch Tool.



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