Silver price falls nearly 2% as dollar strengthens on hawkish Fed
Silver (XAG/USD) dropped nearly 2% on Thursday as the US dollar hit new year-to-date highs, fueled by hawkish signals from the Federal Reserve, with about half of FOMC members reportedly supporting rate hikes in 2026. The metal now trades at $66.07, with analysts eyeing a potential decline toward $61.50 if it remains below the 200-day SMA.
Silver prices declined sharply on Thursday, falling nearly 2% as the US dollar surged to fresh year-to-date highs. The move comes after the Federal Reserve's latest stance, with approximately half of the FOMC board members signaling support for rate increases in 2026, reinforcing a hawkish bias.
XAG/USD traded at $66.07 at the time of writing, retreating from earlier daily highs. The decline places the metal below its 200-day simple moving average, a key technical level. Market participants now watch for further downside toward the $61.50 area if bearish momentum continues.
No direct catalyst was cited for the sudden move, but the broader strengthening of the greenback, driven by expectations of tighter US monetary policy, weighed heavily on silver and other precious metals.
Source: FXStreet Forex News