**BREAKING: Silver Plunges Nearly 3.5% as Fed Inflation Warning Rattles Markets**
Silver prices crashed to near $74.10 during European trading hours Wednesday, tumbling approximately 3.5% as Federal Reserve official Neel Kashkari issued fresh warnings about persistent inflation pressures. The sharp selloff in XAG/USD comes as traders reassess their positions amid mounting concerns that the Fed may maintain its hawkish stance longer than previously anticipated.
Kashkari’s comments are reinforcing expectations that interest rates could remain elevated, putting significant pressure on non-yielding precious metals like silver. The industrial metal, which serves dual purposes as both a safe haven and manufacturing input, faces headwinds from both reduced inflation-hedge demand and concerns about economic slowdown affecting industrial consumption.
Traders and brokers should monitor for potential support levels around the $74 mark, as further deterioration could trigger additional stop-loss orders and accelerate the downside momentum. The selloff is impacting commodity portfolios and derivative positions across global markets.
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FXnCO Insight
** Precious metals traders should brace for continued volatility and consider tightening stop-losses as hawkish Fed rhetoric undermines the inflation-hedge narrative supporting silver’s recent gains.
Source: FXStreet