Silver fell more than 3% to $58 per ounce on Monday, its second straight day of losses, as Middle East conflict revived inflation fears and hardened expectations that the Federal Reserve will keep rates higher for longer.
Silver dropped more than 3% to $58 per ounce on Monday, extending its decline for a second straight day. Rising Middle East tensions amplified inflation worries, strengthening the view that US interest rates will stay higher for longer.
The selling followed a weekend of conflict. US and Iranian forces exchanged heavy missile and drone strikes over the weekend and into Monday. Tehran reported attacks on US military sites across the Gulf and kept the Strait of Hormuz closed, driving oil prices up over 4%.
Investors responded by increasing bets on a rate hike, with markets now pricing in a nearly 70% chance of a September increase.
More signals are due this week. Fed Chair Kevin Warsh is scheduled to testify on monetary policy before Congress on Tuesday, and markets are watching closely for further direction. The US is also set to release June’s consumer price index and retail sales later in the week.
Source: TradingView
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