Interest Rate Hikes Pressure Precious Metals

Rising real interest rates are the "kryptonite" of silver, as they make interest-bearing assets like Treasury bills more attractive. When the Federal Reserve gets aggressive with hikes, silver often faces heavy selling pressure. In 2026, brief periods of rising rates caused silver to consolidate for months. Investors must watch the "real yield" (interest rates minus inflation), as it's the single most important macroeconomic driver.