Silver Slides 2.6% as Rate-Hike Odds Near 90%, Pressuring Miners

Silver fell 2.6% on Friday to roughly $64.90 an ounce as traders raised the probability of a Federal Reserve rate increase at next week's meeting to about 90%, up from roughly 70% before the August inflation report. Gold held comparatively firm near $4,386 an ounce, essentially flat on the session but close to a one-month low.

The August consumer price index rose 0.4% on the month and 3.4% from a year earlier, with core prices up 0.3%, slightly above forecasts. Higher expected policy rates raise the opportunity cost of holding non-yielding metals, which weighed more heavily on silver than on gold given its industrial demand component.

Precious metals equities gave back ground alongside the move. Pan American Silver declined about 4%, and Hecla Mining eased after a strong multi-week run. Copper also weakened, adding pressure to diversified miners including Freeport-McMoRan. The Federal Open Market Committee meets September 15 and 16.