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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Silver Falls as Fed Rate-Hike Bets Weigh on Prices
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.
2026-09-25
Silver Set for Weekly Drop
Silver held below $64 an ounce on Friday and was on track to decline around 4% for the week, pressured by a stronger dollar and surging Treasury yields as expectations grew that the Federal Reserve may need to raise interest rates further to curb inflation. On Thursday, the 10- and 30-year US Treasury yields rose to their highest levels since 2007 and 2004, respectively, while the dollar climbed to a near two-month high. The moves came as stronger-than-expected US economic data and elevated oil prices fueled concerns over persistent inflation and higher interest rates. Markets are currently pricing in roughly a 67% probability of a Fed rate hike in October, following the first increase in three years last week. Meanwhile, oil prices retreated on reports that the US and Iran were considering a phased agreement that could reopen the Strait of Hormuz and lift a US blockade on Iranian ports.
2026-09-25
Silver Slips as Fed Tightening Bets Weigh on Metals
Silver fell below $64 an ounce on Thursday, pressured by growing expectations that the US Federal Reserve could tighten monetary policy further. Rising inflation pressures and signs of a resilient economy are reinforcing bets on another rate hike, with traders increasing positions for a second consecutive tightening in late October. The pressure on precious metals intensified as the US dollar climbed to a two-month high, following data showing US business activity expanded in September at its fastest pace in more than five years. Meanwhile, weekly jobless claims fell to a near 60-year low, underscoring the strength of the labor market and supporting expectations for tighter policy. Elsewhere, oil prices continued to rise as US-Iran diplomatic talks showed no concrete signs of progress, raising concerns over potential supply disruptions.
2026-09-24