Silver extended a two-day decline in Asian trading as oil prices moved above $110 a barrel after attacks in Saudi Arabia raised supply concerns, putting inflation and Federal Reserve rate expectations in focus.
FXStreet quoted silver at about $56.80 per troy ounce at 10:14 p.m. ET Oct. 21 (02:14 GMT Oct. 22), describing a second consecutive day of losses. The outlet linked pressure on the non-yielding metal to inflation concerns and expectations of Fed rate increases.
Brent futures traded at $111.64 a barrel at 2:26 a.m. ET (06:26 GMT) Oct. 22, after gaining $2.82. U.S. West Texas Intermediate reached $99.39 after a $2.24 rise. Reuters reported percentage gains of 2.59% for Brent and 2.31% for U.S. crude, tying the move to supply concerns after attacks in Saudi Arabia.
Saudi Arabia’s Energy Ministry said a drone was intercepted before reaching a Shaybah facility on Oct. 21. Debris set a contractor’s vehicle ablaze outside the site, but the ministry said operations were unaffected. It reported that two residents, one Filipino and one Nepali, died, and two others, one Pakistani and one Indian, were injured. The statement did not identify who launched the drone.
FXStreet reported that CME FedWatch showed an 84% probability of no rate change at the Fed’s Oct. 27-28 meeting and a 90% probability of a December rate hike. CME says those market-implied probabilities are derived from 30-day federal funds futures. The Fed’s next scheduled meeting is Oct. 27-28.
