Commodities
Silver Price Stalls Ahead of Fed's Interest Rate Decision
The price of silver (XAG/USD) remains under pressure near $63 ahead of the Federal Reserve's policy decision on Wednesday. Despite a slight drop to $63.14 during the European trading session, investors are closely watching the Fed's announcement for its impact on interest rates.
A 92% chance of a 25 basis point hike in interest rates to 3.75%-4.00% has been predicted by the CME FedWatch tool, which could boost yields on interest-bearing assets and reduce demand for non-yielding assets like silver.
The recent hawkish expectations from the Fed have led to significant increases in US Treasury Yields, with the 10-year yield reaching a fresh multi-year high of 5.03%.