**BREAKING: Silver Plunges to Six-Month Low as Fed Rate Cut Expectations Pressure Precious Metals**
Silver prices crashed to fresh six-month lows during Wednesday’s Asian session, hitting $60.74 as hawkish Federal Reserve expectations triggered aggressive selling in precious metals markets. The white metal faces intensifying downward pressure as traders price in just two interest rate cuts for 2024, a sharp reduction from earlier dovish forecasts that had supported bullion prices.
The XAG/USD pair’s breakdown reflects broader repositioning across commodity markets as higher-for-longer rate expectations strengthen the dollar and reduce the appeal of non-yielding assets. With the Fed maintaining its restrictive stance amid persistent inflation concerns, silver’s industrial and monetary demand faces headwinds from both elevated borrowing costs and currency dynamics.
Traders holding long positions in precious metals are experiencing significant drawdown as technical support levels crumble. The move below key psychological levels suggests further downside momentum may be building unless economic data shifts the Fed narrative.
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FXnCO Insight
** Silver traders should monitor dollar strength and upcoming Fed speakers closely, as further hawkish rhetoric could accelerate losses toward multi-year support zones.
Source: FXStreet