Silver prices edge lower to $63.60 as the market prices in a 92.5% chance of a Federal Reserve rate hike, weighing on the precious metal's short-term performance.
Silver prices decline ahead of expected Fed rate hike, which typically strengthens the dollar and pressures dollar-denominated commodities.
Silver futures retreated to $63.60 per ounce on Tuesday as investors anticipate a likely interest rate hike from the Federal Reserve. CME Group's FedWatch tool indicates a 92.5% probability of a rate increase following the conclusion of the central bank's two-day policy meeting tomorrow. Despite the short-term pressure, the metal maintains a 51.1% gain over the past year.
Silver prices are declining because expectations of a Federal Reserve interest rate hike typically strengthen the U.S. dollar, which increases the cost of dollar-denominated commodities like silver for international buyers.