Hawkish Fed Outlook Lifts U.S. Yields, Silver Prices Fall

Silver extended its decline on Thursday, as the Federal Reserve's hawkish policy outlook boosted the U.S. dollar and pushed U.S. Treasury yields higher, pressuring the non-yielding metal. As of press time, spot silver was down 1.23% on the day, trading near $63.99, after earlier touching a low around $62.68.

**Hawkish Fed Signals Weigh on Precious Metals**

The Federal Reserve unanimously approved a 25-basis-point rate hike at its latest policy meeting, raising the target range for the federal funds rate to 3.75%-4.00%. The statement indicated that policymakers see economic activity expanding at a solid pace, with inflation still elevated, and that this hike would help bring inflation back to the 2% target more quickly. The Fed Chair struck a hawkish tone at the post-meeting press conference, saying inflation remains too high and that the economy is strong enough for policymakers to focus on price stability, describing the employment side as "in good shape." According to Xinhua Net, market participants interpreted the Fed's monetary policy stance as increasingly hawkish, largely ruling out the possibility of rate cuts this year.

**Dollar and Yields Apply Dual Pressure**

The U.S. dollar index rose above the 100.00 psychological level, while the benchmark 10-year Treasury yield rebounded to near 5.00%. Higher rates and rising bond yields directly pressure silver by enhancing the appeal of interest-bearing assets. However, losses in the metal remained limited, as the 25-basis-point hike was widely anticipated by the market. According to market reports, Treasury yields rose and the dollar strengthened following the Fed's rate decision, putting pressure on precious metal prices.

**Key Support Levels in Focus on Technical Charts**

On the technical front, the next upside target for spot silver bulls is to push prices back above $65.64, with a break above that level targeting $67.24. On the downside, bears' next target is a break below $65.90, with deeper targets at $64.44 and then $63.47. The current price is trading near the lower end of the aforementioned range, with short-term movement still dominated by dollar and yield dynamics.