Article details
Silver prices (XAG/USD) have declined for the third consecutive day, trading near $56.90 per troy ounce during Asian hours on Thursday. The downward trend is attributed to growing market expectations of tighter monetary policy from the U.S. Federal Reserve (Fed), which typically pressures commodity prices like silver due to increased borrowing costs and reduced liquidity. Traders are closely monitoring Fed statements and economic data, such as inflation reports and employment figures, for clues about potential rate hikes. The Fed's aggressive tightening cycle has historically weakened gold and silver, as higher interest rates make non-yielding assets less attractive compared to cash or bonds. For markets, this creates volatility in precious metals, with technical indicators showing key support levels around $56.50. Investors should watch the Fed's upcoming policy meetings and global economic indicators to gauge the trajectory of silver prices in the coming weeks.
