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Why Is Silver Down Today, 6/18/26?

Why Is Silver Down Today, 6/18/26?
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Spot silver (XAGUSD) is down by nearly 3% on Thursday, while silver futures are tumbling lower by over 6%.

The decline comes amid rising rate hike odds following Wednesday’s Federal Open Market Committee (FOMC) meeting. While the Fed voted unanimously to hold rates steady, several members penciled in multiple rate hikes by year-end. Traders now price in a 33.2% chance of two rate hikes by year-end, up from 29.7% a day ago, according to the CME FedWatch tool. The odds of three hikes jumped to 12.5% from 9.2%.

Silver Pressured by Stronger Dollar and U.S.-Iran MOU

Silver tends to benefit from lower rates, not higher rates. That’s because the precious metal doesn’t pay out interest, making it less attractive compared to interest-bearing assets when rates are higher.

Additionally, the U.S.-Iran memorandum of understanding (MOU) has eased geopolitical tensions and strengthened the U.S. dollar. With a stronger dollar, silver becomes more expensive for foreign buyers, which can push down demand for the safe-haven asset.

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