Silver is down by 5.02%

Silver traded around $60.5 an ounce on Tuesday after tumbling nearly 6% in the previous session, as persistent uncertainty over US-Iran negotiations kept oil prices elevated and increased pressure on the Federal Reserve to tighten policy further to curb inflation. Oil prices resumed their advance as Iranian officials reportedly expressed doubt about reaching a deal before US midterm elections in November, following President Donald Trump’s rejection of Tehran’s latest proposal. Treasury yields climbed to fresh multi-year highs amid growing inflation concerns and expectations of further rate hikes, weighing on non-yielding metals. Markets are now pricing in roughly a 70% probability of a Fed rate increase in October, following the central bank’s first rate hike in three years earlier this month. Attention now shifts to this week’s US economic data, including Wednesday’s PCE inflation report and Friday’s nonfarm payrolls figures, for further clues on the policy outlook.

Silver decreased 5.02% to 61.034 USD/t.oz

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.