Silver Price Forecast: XAG/USD falls to near $66.50 as Fed signals further rate hikes

Silver price (XAG/USD) declined to near $66.50 per troy ounce during Asian hours on Wednesday as the Federal Reserve's hawkish outlook influenced the market. The US central bank recently increased its benchmark interest rate target by 25 basis points to the 3.75%-4.00% range, signaling further hikes before the end of the year. The probability of a December rate hike stands at nearly 89.2% according to the CME FedWatch Tool.

Meanwhile, oil prices stabilized after five days of losses, potentially easing inflation concerns. Geopolitical factors, including US-Iran indirect talks and President Trump's reported positive meeting with Iranian envoys, also impacted the market sentiment. Silver, a precious metal often used as a store of value, may gain popularity as an investment option for portfolio diversification during high-inflation periods.