Silver Rebounds from Two-Month Low as Dollar Weakens
Silver prices surged more than 2% to around $60.5 an ounce on Friday, recovering from a two-month low as a softer US dollar and easing oil prices supported the metal, despite lingering concerns over further Federal Reserve rate hikes. Oil prices retreated after a recent rally, following US President Donald Trump’s statement that Washington would not attack Iran before next month’s US midterm elections, as diplomatic efforts to end the conflict continued. Meanwhile, St. Louis Fed President Alberto Musalem said on Thursday that further monetary tightening may be necessary to bring inflation back to the central bank’s 2% target, although he declined to indicate how policymakers should act at their meeting later this month. According to the CME FedWatch Tool, markets were pricing in less than a 20% probability of a rate hike in October, while assigning more than an 80% chance of at least one 25-basis-point increase by December.
5 an ounce on Friday, recovering from a two-month low as a softer US dollar and easing oil prices supported the metal, despite lingering concerns over further Federal Reserve rate hikes. Oil prices retreated after a recent rally, following US President Donald Trump’s statement that Washington would not attack Iran before next month’s US midterm elections, as diplomatic efforts to end the conflict continued. Meanwhile, St.
Louis Fed President Alberto Musalem said on Thursday that further monetary tightening may be necessary to bring inflation back to the central bank’s 2% target, although he declined to indicate how policymakers should act at their meeting later this month. According to the CME FedWatch Tool, markets were pricing in less than a 20% probability of a rate hike in October, while assigning more than an 80% chance of at least one 25-basis-point increase by December.