Hot Commodities: Silver slides below $63 amid rising rate expectations

Silver futures plunged nearly 5% to trade below $63 an ounce on Tuesday, extending recent losses as a stronger US dollar and growing expectations of Federal Reserve rate hikes dampened investor sentiment. MCX July silver futures also fell more than 3%, slipping below ₹227,000 per kg. The dollar index hovered near 101, its highest level since May 2025, supported by hawkish Fed expectations and signs of progress in US-Iran peace talks. Adding to the pressure, both Deutsche Bank and BofA Global Research now expect a Fed rate hike in September. Meanwhile, Washington?s decision to grant Tehran a 60-day license to sell oil internationally has raised expectations of increased global supply. Investors now await this week?s US PCE inflation report, the Fed?s preferred inflation gauge, for further clues on the interest-rate outlook.

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