Key Takeaways:
Silver prices declined 1.5% to $26.80 per ounce on Wednesday after the U.S. Federal Reserve announced its decision to maintain the federal funds rate in its current range.
The move was widely anticipated, but the accompanying statement suggested a more hawkish stance, strengthening the U.S. Dollar Index (DXY) by 0.5% to 106.25, according to data from FXStreet.
The non-yielding precious metal faced pressure as the U.S. 10-year Treasury yield climbed 5 basis points to 4.70%. Higher yields increase the opportunity cost of holding assets like silver, which do not offer a return. The stronger dollar also makes the metal more expensive for buyers using other currencies.
Silver's immediate support is now seen near the $26.50 level. The market's focus will now shift to the upcoming non-farm payrolls data for further clues on the economy's strength and the Fed's future policy path.
The decline in silver was mirrored by a 0.8% drop in gold prices, indicating a broad-based reaction in the precious metals sector to the Fed's hawkish hold.
This article is for informational purposes only and does not constitute investment advice.
