Silver drops below $63 as Fed hike bets lift dollar
Silver touched its lowest level in more than a month, falling below $63/oz amid a stronger U.S. dollar and rising expectations of a Federal Reserve rate hike.
Silver fell below $63 an ounce on Monday, reaching its weakest level in more than a month as a firmer US dollar and rising expectations of a Federal Reserve rate increase weighed on the metal. Markets are pricing in about a 90% chance of a rate hike on Wednesday after data showed US inflation accelerated in August. Core consumer prices increased at their fastest pace in four months and were slightly above expectations. Oil prices continued to climb after Saudi Arabia shut a major crude pipeline following drone attacks, disrupting a key route that bypasses the Strait of Hormuz and adding to global supply concerns.
The Bank of Japan is also expected to raise rates on Friday, while elevated energy prices and persistent Middle East tensions continue to complicate the inflation outlook.