Commodities
Fed Rate Hike Weighs on Silver Prices Amid Stronger US Dollar
The Federal Reserve's (Fed) decision to raise interest rates has put pressure on Silver prices. The Fed raised the federal funds target range by 25 basis points to 3.75%-4.00% in a unanimous 12-0 decision.
Economic activity is expanding at a solid pace, domestic spending remains resilient and unemployment has changed little, according to the central bank's statement. However, inflation remains elevated, and policymakers believe that the rate increase will help bring it back to the 2% target sooner.
The stronger US Dollar (USD) and rising US Treasury yields have also weighed on Silver prices. The XAG/USD trades around $62.68, down 1.56% on the day.