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Silver slips as hawkish Fed expectations lift US yields

XAG/USD fell 1.2% to around $63.65, after New York Fed President John Williams said another rate hike by year end is reasonable, pushing the 10-year Treasury yield toward 5.15%.

Reported · Written up by our desk · Major Pairs

Silver extended its decline on Thursday, falling 1.2% to about $63.65 an ounce, as increasingly hawkish expectations for the Federal Reserve pushed US Treasury yields higher.

FXStreet reports the selling pressure intensified after New York Fed President John Williams indicated it is reasonable to see another interest rate increase by the end of the year, saying inflation needs to return toward the Fed’s 2% target promptly. That backdrop reinforced expectations the central bank could keep tightening after its latest 25 basis point move.

The repricing lifted the benchmark 10-year US Treasury yield toward 5.15%, its highest level since 2007, which can pressure silver because it raises the opportunity cost of holding a non-yielding asset. The stronger US dollar also weighed on the dollar-denominated metal.

Separately, US labor market data stayed resilient, with initial jobless claims slipping to 197K from a revised 198K and continuing claims edging up to 1.719 million. FXStreet also noted XAG/USD remained below key moving averages, though an RSI(14) near 27.9 pointed to oversold conditions that could slow immediate selling.

Latest closeSilver $64.58 ▼2.0%

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