Silver Prices Plummet Under Fed Rate Hike Pressure

The silver price has fallen under pressure from the US dollar and interest rates. The US Federal Reserve (Fed) raised interest rates by another 0.25 percentage points, bringing the operating interest rate band to 3.75-4%. This move caused the USD to appreciate, US bond yields to rise, creating pressure on precious metals.

The silver price dropped to $63.27 per ounce as of September 17, down about 0.59 dollars per ounce compared to the previous day. The increased opportunity cost of holding non-cash generating assets like gold and silver also contributed to the decline in their prices.

Silver's technical zones are also being closely monitored. After failing to maintain a price range around $64 per ounce, it retreated to test the support zone near $62 per ounce. If selling pressure continues, it may head towards the lower zone around $60 per ounce.