Silver Drops to Six-Month Low as Fed Rate Cut Bets Weigh on XAG/USD

XAG/USD falls to $60.74, its lowest level in over six months, amid expectations of prolonged Fed hawkishness. Silver prices extended losses, with XAG/USD hitting $60.74 during Asian trading, marking a fresh six-month low. The decline reflects growing trader conviction that

XAG/USD falls to $60.74, its lowest level in over six months, amid expectations of prolonged Fed hawkishness.

Silver prices extended losses, with XAG/USD hitting $60.74 during Asian trading, marking a fresh six-month low. The decline reflects growing trader conviction that the Federal Reserve will delay interest rate cuts, reducing demand for non-yielding assets like silver.

The drop follows a broader sell-off in precious metals, as higher-for-longer U.S. rates diminish silver’s appeal. Prior to this session, XAG/USD had struggled to hold above $61, with resistance building near $62 in recent weeks.

Markets now await further Fed commentary for clues on the timing of potential rate adjustments, which could dictate silver’s next move.

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