Silver Slides Over 4% as Dollar Hits One-Year Highs on Fed Hawkish Stance

Silver (XAG/USD) fell sharply by over 4% on Tuesday, breaking below key support levels as the US Dollar rallied to near one-year highs. The dollar's strength followed the Federal Reserve's hawkish pivot at last week's monetary policy meeting, which solidified expectations that interest rates will remain elevated for an extended period.

The stronger dollar typically weighs on dollar-denominated commodities like silver, making them more expensive for international buyers. The Fed's stance has diminished hopes for near-term rate cuts, providing additional support for the greenback and pressure on precious metals.

Bulls now face a crucial test at the $60 level. If the dollar continues its upward momentum, silver could see further downside in the near term. Traders will watch for any shift in Fed rhetoric or economic data that could alter rate expectations.