Silver Price Forecast: Silver/USD Plunges Toward $63.60 After Fed's Williams Delivers Hawkish Remarks

Silver prices faced notable selling pressure during Thursday's European trading session. Market data shows spot silver is currently trading near $64.14, with significant intraday losses. Earlier, at the time of writing, prices had approached $63.60.

**Hawkish Fed Signals Dominate Market Sentiment**

The primary driver of this decline stems from the latest remarks by Federal Reserve officials. New York Fed permanent voter John Williams delivered hawkish comments during the European session, reinforcing market expectations of tighter monetary policy. This stance bolstered the US dollar, directly pressuring dollar-denominated precious metals like silver, prompting a rapid exit of safe-haven funds.

**Short-Term Volatility vs. Long-Term Expectations Diverge**

Despite short-term pressure, some institutions remain optimistic about silver's medium-to-long-term outlook. Market reports indicate that analysts at a top bank predict silver prices could rise to around $90 over the next 6 to 12 months, with potential to even touch $75 in the near term. However, such long-term forecasts contrast sharply with the current decline driven by macro policy pressures, highlighting the divergence between short-term trading logic and long-term value assessment in the market.

**Market Awaits Further Policy Path Guidance**

Currently, market focus remains on the Fed's future policy trajectory. Williams' hawkish remarks have intensified investor concerns that high interest rates may persist for longer, temporarily overshadowing silver's industrial demand and safe-haven appeal. Absent new bullish catalysts, silver prices may continue to consolidate near recent lows, awaiting direction from additional economic data or policy signals.