Silver Prices Squeezed by Fed Hikes and Higher Yields

Silver (XAG/USD) prices held steady on Friday, but traders are bracing for a weekly decline of 3.7% as interest rate hikes and higher yields weigh heavily on the precious metal.

The US Federal Reserve's hawkish stance has pushed Treasury yields to multi-year highs, making it difficult for silver to break above $64.00. Despite efforts to move higher, XAG/USD remains capped below this level, with bears eyeing the bottom of the monthly trading range at $62.30.

Precious metals have been struggling this week due to a combination of strong US business activity, rising inflationary pressures, and concerns about ballooning government debt. This has led to higher yields across the curve, posing a significant challenge for silver and other yieldless assets.