Federal Reserve Rate Hike Weighs on Silver Prices

The Federal Reserve's decision to raise interest rates by 25 basis points has weighed on Silver prices, causing them to slide. The non-yielding metal is now trading at around $62.68, down 1.56% on the day.

The US Dollar Index (DXY) has advanced above the psychological 100.00 mark, while the benchmark 10-year US Treasury yield has rebounded toward 5.00%. Higher interest rates and rising bond yields typically make interest-bearing assets more appealing, putting downward pressure on Silver.

Fed Chairman Kevin Warsh struck a hawkish tone, stating that inflation remains too high and that the economy is strong enough for policymakers to focus on price stability. He described the labor side of the Fed's mandate as 'in good shape.'