XAG/USD falls near $58.00 after Fed officials signal prolonged restrictive policy to meet 2% inflation target.
Silver prices retreated to around $58.10 per troy ounce in early European trading Friday, reversing two days of gains. The decline follows hawkish signals from Federal Reserve officials, with markets pricing a 65% chance of a September rate hike.
The CME FedWatch tool reflects growing expectations for tighter monetary policy, while Fed communication scores, including an FXS Speechtracker rating of 7/10, indicate a firmer commitment to the 2% inflation goal. Officials emphasized that inflation control requires sustained restrictive measures, despite economic resilience.
The FXS Fed Sentiment Index surged 18.94 points to 147.58, reinforcing a hawkish stance that typically strengthens the USD and pressures non-yielding assets like silver.