XAG/USD holds gains after the Fed’s divided decision triggers Dollar decline despite rising long-end Treasury yields.
Silver prices remained near $57.17 in late North American trading as the Federal Reserve’s unchanged rates decision unexpectedly weakened the Dollar. The XAG/USD pair showed little movement despite volatility driven by Fed dissent and surging Treasury yields.
The Fed’s statement noted steady economic growth and robust productivity but revealed a split vote, with three regional presidents favoring a 25-basis-point hike. US 30-year Treasury yields rose over 10 basis points to multi-decade highs, yet the Dollar Index (DXY) fell 0.40% to 100.93.
Market reaction saw the Dollar extend losses despite higher yields, while silver held firm amid choppy trading conditions. Fed Chair Warsh reiterated inflation commitments but offered no clear path to the 2% target.