Silver Price Collapses as Fed Hawks Push Yields Higher
The silver price (XAG/USD) plummeted to near $63.60 on Thursday during the European trading session, down 1.25% from its previous value.
The sharp decline was triggered by hawkish comments from New York Federal Reserve Bank's John Williams, a permanent voting member, who signaled that the central bank is highly concerned about rising inflationary pressures and has gained confidence in the overall job outlook.
Williams stated that it is 'reasonable to see another rate hike by end of year,' which further solidified the Fed's hawkish bias. This stance suggests that the central bank is keeping the door open to further tightening, even as explicit forward guidance is dialed back.
The silver price was already under pressure due to rising US Treasury Yields, which have rallied on fresh acceleration in Federal Reserve interest rate hike expectations. The odds of a rate hike in all two policy meetings remaining this year have increased to 55% from 42.3% seen on Tuesday.