Silver Price Falls to Near $56.50 on Rising Fed Rate Hike Odds

Silver prices extended their decline for a third straight session, slipping to near $56.50 per troy ounce during Asian trading on Thursday. The metal is facing steady headwinds as market sentiment shifts toward expectations of more aggressive rate hikes by the Federal Reserve.

Higher interest rates tend to boost the dollar and increase the opportunity cost of holding non-yielding assets like silver. Traders are now pricing in a higher probability of a 50-basis-point rate hike at the next Fed meeting, further pressuring XAG/USD.

Technically, silver remains under pressure below the $57.00 handle, with immediate support seen around the $56.50 level. A break below could open the door toward the $56.00 zone, while resistance is likely at $57.50.