Silver Pressured as Fed Holds Rates Steady with Hawkish Projections

Key Facts

In a move reflecting the U.S. central bank's commitment to a restrictive monetary stance, the Federal Reserve kept interest rates unchanged at a range of 3.50% to 3.75% during its June meeting. According to reports, projections showed that 9 out of 18 committee members still foresee the possibility of one more rate hike this year, intensifying pressure on non-yielding silver which retreated toward the $63.20 level.

This decision has bolstered the greenback against major commodities, with market data showing sustained selling pressure on gold and copper alongside silver's 3% intraday decline. Copper remains particularly vulnerable following Chinese industrial production data which grew by 4.5% as of June 16, 2026, signaling persistent concerns over industrial demand in a 'higher-for-longer' interest rate environment.

Traders are now focused on the $63.00 support level (close June 22, 2026) to determine the potential for further technical breakdowns. Looking ahead, the market will closely monitor upcoming Federal Reserve official communications and inflation data to gauge the conviction of the divided committee regarding the timing of the final projected rate hike.