Silver Slumps as Hawkish Fed Comments Boost Dollar

Silver prices plummeted on September 23rd, dropping 2.13% to $65.509 as the U.S. dollar strengthened and Federal Reserve officials hinted at more interest rate hikes.

The decline was driven by a firmer U.S. dollar and hawkish commentary from Fed policymakers, which led institutional investors to reassess their expectations for future rate increases.

Silver's price movement was also influenced by its higher beta and smaller market liquidity compared to gold, making it more vulnerable to sell-offs in leveraged paper markets.