**BREAKING: Silver Retreats to $67.90 as Fed Rate Hike Speculation Intensifies**
Silver prices pulled back during Asian trading hours Tuesday, slipping to approximately $67.90 per troy ounce after surrendering gains from the previous session. The precious metal is facing renewed pressure as market participants increase bets on additional US Federal Reserve interest rate hikes, while ongoing Middle East geopolitical uncertainty adds to market volatility.
The XAG/USD pair remains on the defensive as traders reassess monetary policy expectations, with higher interest rates typically dampening demand for non-yielding precious metals like silver. The retreat follows a brief rally, suggesting weakening bullish momentum in the near term as the dual headwinds of hawkish Fed positioning and regional instability weigh on sentiment.
Precious metals traders and commodity brokers should monitor upcoming Fed communications and Middle Eastern developments closely, as both factors are likely to drive continued volatility in silver markets.
**
FXnCO Insight
** Traders should consider tightening stop-losses on long silver positions and watch the $67.50 support level for potential further downside if Fed rate hike rhetoric intensifies.
Source: FXStreet