Silver Slumps as Inflation Fears Boost Rate-Hike Bets

2026-09-28 12:38 By Joana Ferreira 1 min. read

Silver fell more than 4% toward $61 an ounce on Monday, its lowest level since August 7, as surging oil prices intensified inflation concerns and bolstered expectations for higher-for-longer interest rates.

A stronger US dollar and US Treasury yields near 19-year highs also pressured the non-yielding metal.

Brent crude surged to $107 a barrel after President Donald Trump rejected an Iranian peace proposal to resolve the conflict and reopen the Strait of Hormuz, prompting markets to raise bets on further Federal Reserve rate hikes.

Markets now see a more than 70% chance of a second hike as soon as October, according to CME’s FedWatch Tool.

Cleveland Fed President Beth Hammack said Friday that persistently high inflation risks conditioning the public to accept elevated prices as the norm, adding that the central bank cannot allow that to happen.

Focus now turns to this week’s US economic data, including Wednesday’s PCE inflation report and Friday’s nonfarm payrolls figures.



News Stream
Silver Slumps as Inflation Fears Boost Rate-Hike Bets
Silver fell more than 4% toward $61 an ounce on Monday, its lowest level since August 7, as surging oil prices intensified inflation concerns and bolstered expectations for higher-for-longer interest rates. A stronger US dollar and US Treasury yields near 19-year highs also pressured the non-yielding metal. Brent crude surged to $107 a barrel after President Donald Trump rejected an Iranian peace proposal to resolve the conflict and reopen the Strait of Hormuz, prompting markets to raise bets on further Federal Reserve rate hikes. Markets now see a more than 70% chance of a second hike as soon as October, according to CME’s FedWatch Tool. Cleveland Fed President Beth Hammack said Friday that persistently high inflation risks conditioning the public to accept elevated prices as the norm, adding that the central bank cannot allow that to happen. Focus now turns to this week’s US economic data, including Wednesday’s PCE inflation report and Friday’s nonfarm payrolls figures.
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Silver Hits 7-week Low
Silver decreased to 61.36 USD/t.oz, the lowest since August 2026. Over the past 4 weeks, Silver lost 7.74%, and in the last 12 months, it increased 30.8%.
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Silver Declines to 7-Week Low
Silver dropped toward $61 an ounce on Monday, hitting its lowest levels in seven weeks as stalled US-Iran negotiations kept oil prices elevated and reinforced expectations for additional Federal Reserve tightening to curb inflation. President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, saying Tehran had overplayed its hand while adding that he expects talks to resume this week. Meanwhile, Iran said it would not soften its conditions for reopening the strategically important waterway. In the US, several Fed officials cited resilient economic growth and a robust labor market as reasons additional rate hikes could be necessary. Cleveland Fed President Beth Hammack said those factors, together with concerns over government debt, are contributing to higher long-term Treasury yields. Investors now await the Fed’s preferred inflation gauge and key US jobs data due this week, which could provide further clues on the path of monetary policy.
2026-09-28