Silver is staging a sharp rebound despite the Federal Reserve delivering the kind of policy move that would normally pressure precious metals.
The Fed raised its benchmark rate by 25 basis points to 3.75%-4.00% Wednesday, its first increase since 2023. Silver initially came under pressure, but the weakness quickly reversed, with the metal jumping roughly 4.6% Thursday.
The reaction is particularly notable because silver had already been battling growing Fed rate-hike risk earlier this month.
Dollar and Treasury Yields Give Silver Relief
The U.S. dollar weakened Thursday, while longer-term Treasury yields also retreated as oil prices eased.
Both moves helped silver. A weaker dollar makes the metal cheaper for international buyers, while falling bond yields reduce the opportunity cost of holding non-yielding assets.
The reversal comes after silver recently held around $66 while CPI and Fed risks tested its rebound.
Can Silver Reach $70 Next?
Silver also has longer-term support from tight supply. The Silver Institute expects the global market to record its sixth consecutive annual supply deficit in 2026, while physical investment demand is expected to increase.
Attention now turns to $70.
If silver maintains its rebound while Treasury yields and the dollar remain contained, another attempt at $70 could come into focus. However, another surge in yields could quickly pressure the metal again.
That risk remains important because the Fed has signaled that borrowing costs could stay elevated, a backdrop explored in Coinpaper’s breakdown of what comes next after the Fed hike.
For now, the key signal is simple: the Fed raised rates, silver sold off, and buyers came straight back.
