US Rate Hike Sends Silver Prices Tumbling Amid Hawkish Fed Tone

The Federal Reserve raised interest rates by 25 basis points to 3.75%-4.00% in a unanimous decision, citing solid economic growth and resilient domestic spending. The move pushed the US Dollar Index above the psychological 100.00 mark, while the benchmark 10-year US Treasury yield rebounded towards 5.00%. Higher interest rates typically weigh on Silver, but its decline remained limited as the quarter-point hike was widely expected.

Fed Chairman Kevin Warsh struck a hawkish tone, emphasizing that inflation remains too high and the economy is strong enough for policymakers to focus on price stability. He described the labor side of the Fed's mandate as 'in good shape.'