Silver Heads for Monthly Drop After Fed Hike Bets Gain: ChartBy
Silver, which has gained all but one month in 2016, is headed for a drop in August, outpacing gold’s decline after bets increased for the Federal Reserve to tighten monetary policy this year. The metal has slumped 7.2 percent this month while gold lost 2 percent. “When we don’t see a sustainable gold price -- because silver has got much more of an industrial component to it -- it tends to give up a lot quicker any gains that it’s made,” said David Lennox, a resources analyst at Fat Prophets in Sydney. “Markets are now starting to factor in an interest rate increase by the end of December with a little more certainty, and that won’t help the gold price, nor the silver price.”
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