Silver Hits New Yearly Low on Fed Rate Hike Fears, PCE Caution

Silver prices continued their decline on Wednesday, touching a new yearly low not seen since December. The metal traded around $58.75 at the time of writing, down 4.62% on the day.

Selling pressure intensified as markets priced in a higher probability of additional Federal Reserve rate hikes. Traders also showed caution ahead of the upcoming US PCE inflation data, which could reinforce the hawkish stance of the central bank.

The drop marks an extension of the recent correction in silver, with the metal failing to find support at previous lows. The bearish sentiment has been driven primarily by the outlook for tighter monetary policy, which strengthens the US dollar and reduces demand for non-yielding assets like silver.