Silver prices declined on Tuesday, August 18. U.S. housing starts plunged a much-worse-than-expected 12.4% in July. This data typically boosts silver. It signals a U.S. economic slowdown, increasing bets on Federal Reserve rate cuts.
The market focused on surging long-term borrowing costs. Inflation fears also persisted, driven by rising oil prices and geopolitical tensions. U.S. 30-year Treasury yields climbed to their highest levels since 2007. This increased the opportunity cost of holding non-yielding precious metals like silver. Higher yields created a headwind for silver prices.
Pressure from higher yields ultimately overpowered the potentially bullish economic data. Silver futures fell more than 1%. They traded around $65 per ounce. Concerns over persistent inflation and its impact on bond yields are the dominant driver for the metal.