FX.co ★ Silver Goes Lower After FOMC

Silver prices slipped toward $76.9 per ounce on Wednesday after a hawkish hold by the Federal Reserve and upwardly revised inflation projections increased the opportunity cost of holding non-yielding precious metals. The pressure on silver followed the FOMC’s decision to keep the federal funds rate unchanged in a 3.5%–3.75% target range while signaling only one rate cut in 2026.

At the same time, geopolitical tensions escalated after airstrikes on Iranian energy infrastructure and the killing of intelligence minister Esmaeil Khatib. Despite this, the Fed raised its 2026 Core PCE inflation forecast, indicating a more restrictive long-term policy stance. Policymakers warned that a potential closure of the Strait of Hormuz could trigger a structural energy shock, counteracting emerging signs of a cooling labor market.

As a result, silver remains under pressure from elevated Treasury yields and a stronger US dollar, as investors weigh a 2.4% GDP growth outlook against ongoing stagflationary risks.