Silver Prices Fall Amid Hawkish Fed Comments and Rising Rate Hike Expectations

Silver prices have been under pressure due to hawkish remarks from Federal Reserve officials, leading to increased expectations of additional US interest rate hikes.

Musalem, a Fed official, emphasized the need for earlier and incremental rate hikes to tackle inflation risks, which he believes will remain elevated over the next 18 months. He warned that without further policy restraint, inflation is likely to remain substantially above the 2% target.

The FXS Fed Sentiment Index has risen by 0.42 points to 149.96, signaling a solid reinforcement of hawkish expectations in line with elevated speechtracker scores. This indicates that the market anticipates additional tightening to contain persistent inflation risks for the Dollar.