Silver prices decline after stronger US manufacturing data fuels expectations of prolonged Federal Reserve tightening.
Silver (XAG/USD) fell 0.73% to $57.20 on Monday as a robust US manufacturing PMI report reinforced expectations of a hawkish Federal Reserve. The data suggested sustained economic resilience, reducing demand for non-yielding assets like silver.
Prior to the release, silver had traded near $57.60, with markets pricing in a higher likelihood of extended restrictive monetary policy. Comparable periods saw similar declines when economic data exceeded forecasts, pressuring precious metals.
The immediate reaction saw silver extend losses, while Treasury yields edged higher on revised Fed rate hike probabilities.