Dollar Strength Weighs on Silver Price Amid Hawkish Fed Repricing

The US Dollar Index has reached its highest level in over a year at 101.49, fueled by the hawkish Fed repricing that has led to a nearly 2% USD rally in September.

This strength in the Greenback has had a negative impact on precious metals, with XAG/USD trading below $61.00 due to their negative correlation with the US Dollar.

John Velis, analyst at BNY Markets, notes that markets are pricing in confidence that policymakers will respond forcefully to any renewed price pressures, pushing real yields up and weighing heavily on precious metals.