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.



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