Silver drops below $65 as Treasury yields hit January 2025 highs
Silver fell more than 2% to below $65 an ounce Tuesday, pressured by higher US Treasury yields. Investors look to Wednesday’s ADP employment report and Friday’s nonfarm payrolls for Fed-policy signals.
Silver prices fell more than 2% to below $65 an ounce on Tuesday, their lowest level since August 19, as elevated US Treasury yields pressured the non-yielding metal, while investors await key US labour-market data due later this week.
US Treasury yields climbed to their highest level since January 2025 as heightened Middle East tensions fueled inflation concerns and strengthened expectations for a near-term Fed rate hike.
Last week, Fed Chair Kevin Warsh said at the Jackson Hole symposium that the central bank would “have work to do” if policymakers were not confident inflation was returning to its 2% target.
Markets are currently pricing a 66% probability of a rate hike later this month, according to the CME FedWatch Tool.
Attention now turns to the ADP employment report on Wednesday and nonfarm payrolls on Friday for further signals on the Fed’s policy path.