⚡ Silver Price Forecast: XAG/USD holds losses below $62.50 on Fed hike bets

**BREAKING: Silver Halts Rally, Drops Below $62.50 on Fed Rate Hike Expectations**

Silver prices ended a four-day winning streak on Monday, falling to approximately $62.30 per troy ounce during European trading hours. The white metal’s decline comes as markets increasingly price in the possibility of a Federal Reserve interest rate hike later this year, putting pressure on non-yielding precious metals.

The XAG/USD pair slipped below the key $62.50 level as strengthening Fed hawkish sentiment weighs on commodities that don’t generate income. Higher interest rates typically reduce the appeal of precious metals like silver, as they increase the opportunity cost of holding non-interest-bearing assets. Traders and brokers should monitor upcoming Fed communications and economic data releases that could further influence rate expectations and precious metals positioning.

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FXnCO Insight

** Precious metals traders should prepare for continued volatility in silver prices and consider reducing long exposure if Fed officials maintain hawkish rhetoric in upcoming speeches, with $62.00 now acting as immediate support.

Source: FXStreet