Silver Price Catches Between Hawkish Fed and ETF Inflows

The silver market is facing pressure from opposing forces, as indicated by its recent price action. On one hand, physical silver funds are attracting capital, yet the metal's price continues to struggle against a ceiling of monetary policy uncertainty.

The Federal Reserve's decision on Wednesday to hold its benchmark rate steady in the 3.50% to 3.75% range was not unanimous, with three FOMC members voting for an immediate hike to combat inflation.

This hawkish undertone has rippled through fixed income markets, lifting the 10-year Treasury yield to 4.68%, and increasing the headwind for silver.

The greenback is also adding to silver's woes, with the dollar index climbing to 100.30 points, making the dollar-denominated metal more expensive for international buyers.