Silver Opens Lower Amid Rising Rate Hike Expectations

Silver opened the trading week lower as markets priced in a higher probability of a Fed rate hike at the September meeting. Precious metals, which yield no interest, tend to lose appeal during periods of monetary tightening as investors favor income-generating instruments like bonds. Silver is also under pressure from a stronger dollar, which typically accompanies hawkish Fed signals. Industrial demand for the metal remains stable, but it isn't enough to offset broader macroeconomic headwinds. For commodity investors, the current move is a reminder to closely track central bank rhetoric ahead of rate decisions.