Silver Market Faces Downward Pressure from Hawkish Fed and Strong Dollar

The silver market has been volatile in recent weeks, with spot silver trading around $60.66 an ounce on September 29 after falling sharply.

The price of silver is being influenced by two opposing forces: tighter US monetary policy and a physically tight market.

The Federal Reserve's decision to raise its benchmark interest rate by 25 basis points to 3.75-4.00 percent has put upward pressure on bond yields, making silver less attractive as it does not generate interest or cash flow.

A stronger US dollar index, which has moved close to a two-month high, is also contributing to the downward pressure on silver prices.