Silver (XAG/USD) extends its correction on Wednesday and trades around $58.75 at the time of writing, down 4.62% on the day after hitting a fresh low not seen since December 2025.
The white metal remains under significant pressure as expectations of a more restrictive monetary policy stance in the United States (US) continue to underpin the US Dollar (USD)
The latest decline in Silver comes amid an aggressive repricing of interest rate expectations. The Federal Reserve (Fed) delivered a distinctly hawkish message at its latest meeting, fueling speculation that borrowing costs could rise further in the coming months. According to the CME FedWatch tool, investors are now assigning a high chance to a rate hike before the end of the year.
This backdrop continues to support the US Dollar, whose strength is weighing on dollar-denominated precious metals. A stronger Greenback makes Silver more expensive for international buyers, while higher interest rates reduce the appeal of non-yielding assets such as Silver. US Treasury yields have also moved higher as investors adjust their expectations in response to persistent inflation risks.