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Silver prices (XAG/USD) have declined for the third consecutive day, currently trading near $72.20 per troy ounce during Asian trading hours. The decline is attributed to a hawkish Federal Reserve outlook, which has raised concerns about tighter monetary policy and reduced demand for non-yield assets like silver. Analysts highlight that rising U.S. interest rates are making gold and silver less attractive compared to cash and bonds.
The bearish momentum for silver is significant for traders, as it reflects broader macroeconomic pressures. A hawkish Fed typically strengthens the U.S. dollar, indirectly weighing on silver prices. This trend could also impact other industrial metals, given their sensitivity to global economic growth expectations. Investors are closely monitoring upcoming Fed statements and inflation data for further clues on policy direction.
For commodity markets, the Fed's stance remains a critical factor. If rate hikes continue, silver may test key support levels below $72.00. Traders should watch for a potential breakdown below $70.00, which could trigger further declines. Meanwhile, geopolitical risks and industrial demand from emerging markets could offer some short-term support.
