XAG/USD trades near $57.90 after the Fed keeps rates steady but signals prolonged inflation concerns, weighing on non-yielding assets.
Silver prices (XAG/USD) remained subdued near $57.90 per troy ounce in Asian trading Thursday, retreating from modest gains after the Federal Reserve’s decision to hold rates at 3.5%–3.75%. The Fed’s hawkish pause, despite rising inflation tied to Middle East tensions, provided limited support for the metal.
The Fed’s July meeting saw no rate change, though dissenters within the Federal Open Market Committee pushed for a 25-basis-point hike. Chair Kevin Warsh emphasized the central bank’s commitment to its 2% inflation target, avoiding explicit forward guidance but maintaining a firm tone. The FXS Speechtracker rated the statement 7.4/10, reflecting a hawkish tilt.
Markets now await decisions from the Bank of England and Bank of Japan, both expected to hold rates steady this week. Elevated borrowing costs continue to pressure silver, a non-yielding asset, as investors weigh the Fed’s policy path against global economic uncertainty.