Silver prices retreat to $63.35 as hawkish Fed expectations intensify, while geopolitical instability in the Middle East drives volatility in global energy markets.
Silver futures opened at $64.79 per ounce on Monday, marking a 0.6% decline as markets price in an 86.5% probability of a Federal Reserve rate hike. Concurrently, global oil prices face upward pressure following attacks on a critical Saudi Arabian pipeline, further complicating the macroeconomic landscape for precious metals.
While geopolitical instability usually supports safe-haven assets, silver is currently pressured by rising expectations of a Federal Reserve interest rate hike, which increases the opportunity cost of holding non-yielding assets.