Silver Goes Lower After FOMC
2026-03-18 18:21
By
Felipe Alarcon
1 min. read
Silver prices fell toward $76.9 per ounce on Wednesday as a hawkish hold from the Federal Reserve and upwardly revised inflation forecasts heightened the opportunity cost of holding non-yielding precious metals.
This downward pressure follows the FOMC decision to maintain the federal funds rate at the 3.5%–3.75% target range while projecting only one rate reduction for 2026.
While geopolitical instability intensified following airstrikes on Iranian energy infrastructure and the killing of intelligence minister Esmaeil Khatib, the Fed raised its 2026 Core PCE inflation forecast to signal a more restrictive long term policy path.
Policymakers expressed concern that the closure of the Strait of Hormuz could trigger a structural energy shock to offset signs of a softening labor market.
Consequently, silver remains vulnerable to elevated Treasury yields and a stronger dollar as investors weigh a 2.4% GDP growth projection against the persistent risk of stagflationary pressures.