Silver Prices Rise Amid Fed Rate Hikes

The price of Silver (XAG) rose by 2.79% to $64.75, bucking expectations amidst a broader trend driven by higher U.S. interest rates and inflationary pressures.

Fed rate hikes have increased the appeal of dollar assets compared to non-yielding commodities like silver, reducing investment demand for the metal.

However, market action suggests buyers are responding to other factors or seeking value amid shifting macro dynamics.

The Federal Reserve raised its federal funds target range by 25 basis points to 3.75%-4.00%, driven by signs of persistent inflation and resilient economic activity.