Silver and gold prices retreat as hawkish Fed minutes reinforce expectations for additional rate hikes, with XAG/USD breaking below the $60 threshold.
Silver is experiencing downward pressure as the latest Federal Reserve minutes indicate that officials are planning an additional interest rate hike before the end of the year. This hawkish monetary policy stance has caused the asset to decline by over 1.67%, breaking below the $60 support level to trade at $59.69.
The price is declining due to hawkish Fed minutes suggesting further interest rate hikes, which typically strengthens the dollar and pressures non-yielding assets like silver.
Gold is mirroring the bearish trend observed in silver, driven by the market's reaction to the Federal Reserve's commitment to further monetary tightening. The hawkish outlook presented in the recent Fed minutes has negatively impacted investor sentiment toward precious metals, leading to a synchronized decline across the sector.
Higher interest rates generally increase the yield on competing assets like bonds, making non-interest-bearing assets like gold less attractive to investors.
Silver prices extended losses to $59.69, dropping 1.67% as markets reacted to hawkish Federal Reserve minutes. Officials indicated that another interest rate increase remains likely before the end of the year, pressuring precious metals.
Precious metals are declining because the latest Federal Reserve minutes suggest that officials are planning another interest rate hike before the end of the year, which typically strengthens the dollar and weighs on non-yielding assets.