Silver prices weakened on Wednesday (April 29th) as the market digested the Federal Reserve's latest decision, with the strengthening US dollar and rising Treasury yields pressuring the non-yielding metal. XAG/USD traded around US$71.20/oz, down more than 2% on the day.

The Fed kept its benchmark interest rate in the 3.50%–3.75% range as expected, but the meeting minutes highlighted internal differences in opinion with an 8–4 vote. Governor Stephen Miran supported a 25 bps cut, while Beth Hammack, Neel Kashkari, and Lorie Logan rejected the inclusion of an "easing bias" in the policy statement.

In its statement, the central bank assessed that economic activity was still expanding at a solid pace and the labor market was relatively stable, with the unemployment rate having changed little in recent months. However, the Fed reiterated that inflation remained high, partly driven by rising dunia energy prices, and highlighted that developments in the Middle East were adding uncertainty to the economic outlook.

For silver, the combination of persistent

For silver, the combination of persistent inflation and energy risks reinforces expectations that interest rates will remain higher for longer. This situation increases the opportunity cost of holding silver, potentially leading to continued price pressure as long as the dollar and yields remain strong and the market fails to see clearer progress on inflation. (Arl)