Silver Drops 1.56% as Fed Hikes Rates and Dollar Strengthens
Silver has fallen to $62.68 following the Fed's unanimous rate hike, a move that strengthened the US Dollar and pushed Treasury yields higher. Despite the hawkish commentary from Fed Chair Kevin Warsh and technical signals indicating a bearish bias, the metal's decline has been limited due to the widely expected nature of the interest rate increase.
Mitrade notes that the drop in silver remains contained because the 25-basis-point hike was widely anticipated, while the Dollar Index breaking above 100.00 and 10-year yields approaching 5.00% continue to pressure the non-yielding metal. Fed Chair Kevin Warsh further solidified the hawkish outlook by characterizing the labor market as 'in good shape' and prioritizing price stability.
Source: MitradeTradingKey notes that Fed Chair Kevin Warsh struck a notably hawkish tone, asserting that the economy is robust enough to prioritize price stability. Technically, the report highlights that silver remains capped by broader downtrends below the 100-day and 200-day moving averages, with the 50-day SMA at $62.76 serving as immediate support.
Source: TradingKeySilver prices fell to $62.68 following the Federal Reserve's decision to raise interest rates, which boosted the US Dollar and Treasury yields.
Source: FXStreet
