Silver prices hovered near $63 per ounce on Wednesday, testing their lowest level in more than a month, after the Federal Reserve implemented a 25 bps interest rate hike. The move by the US central bank was widely anticipated, following data showing elevated consumer and producer inflation, alongside solid economic growth and low unemployment. In addition, most FOMC members signaled the likelihood of one more rate increase this year.
Yields on shorter-maturity Treasuries climbed to multi-year highs, weighing on bullion as investors shifted toward interest-bearing securities. At the same time, the Bank of Japan is also expected to raise rates this week. Metals linked to data center expansion likewise came under pressure, after AI industry leaders raised concerns about the safety of increasingly advanced models, potentially undermining speculative demand for computing infrastructure.
