Silver slides as hawkish Fed lifts US Dollar and Treasury yields

Silver (XAG/USD) experienced a decline on Wednesday due to a stronger US Dollar and rising US Treasury yields following the Federal Reserve's monetary policy decision. The Fed raised the federal funds target range by 25 basis points to 3.75%-4.00%, stating that economic activity is expanding at a solid pace, inflation remains elevated, and the rate increase will help bring inflation back to the 2% target sooner.

The US Dollar Index (DXY) advanced above the psychological 100.00 mark, while the 10-year US Treasury yield rebounded toward 5.00%. Higher interest rates and rising bond yields typically weigh on Silver by increasing the appeal of interest-bearing assets. However, the metal's decline remains limited as the quarter-point hike was widely expected.

Technical analysis shows a bearish near-term bias for Silver, with price holding above the 50-day SMA but remaining well below the 100-day and 200-day SMAs. Support is seen near the 50-day SMA at $62, while resistance lies at the 100-day SMA at $66.

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