XAG/USD declines for a third day as traders price in higher U.S. interest rates, weighing on non-yielding assets.
Silver prices fell to near $56.50 per troy ounce, extending losses for a third consecutive session amid rising expectations of tighter Federal Reserve policy. XAG/USD traded around $56.90 during Asian hours, pressured by a stronger USD and higher Treasury yields.
The decline follows a shift in market sentiment toward a more hawkish Fed stance, with investors pricing in potential rate hikes to curb inflation. Silver, which does not yield interest, tends to underperform in high-rate environments.
No immediate market reaction was specified, but the trend reflects broader weakness in precious metals as monetary policy expectations firm.