The impact of the Federal Reserve’s interest rate hikes on spot silver:

Generally speaking, silver exists in the market as a zero-interest commodity. Silver is directly linked to the U.S. dollar, and the U.S. dollar An increase in interest rates will inevitably lead to the U.S. dollar being supported by buyers in the international market. More people will buy U.S. dollars because they can get interest. So the 17 consecutive times the U.S. dollar has raised interest rates means that silver should follow the increase in U.S. interest rates. has been sold off. But the fact is that silver has been trending extremely strongly recently, and the U.S. dollar’s ??interest rate hike cycle has not affected the trend of silver at all.

In short, the impact of the Federal Reserve on the price of silver is not a simple direct or inverse relationship. , it needs to be comprehensively analyzed based on the macroeconomic background, economic cycle and other short-term factors at that time. In the long term, we need to be wary of the possible pressure on the commodity market and silver caused by the Federal Reserve's interest rate hikes. Interest rate hikes are the central bank of a country or region. The act of raising interest rates increases the borrowing costs of commercial banks and other financial institutions from the central bank, which in turn forces the market to increase interest rates. The purposes of raising interest rates include reducing money supply, suppressing consumption, curbing inflation, encouraging private deposits, Slowing down or inhibiting market speculation, etc. Raising interest rates can also be used as an indirect means to increase the value of the country's or regional currency against other currencies.

Generally speaking, when a country's economy overheats, the inflation situation will become increasingly severe. In severe times, the economy can be cooled down by raising interest rates. The Fed's interest rate hikes will promote the appreciation of the U.S. dollar, which will exert a certain pressure on the stock market and commodities. However, the specific economic environment requires a comprehensive analysis combined with the current economic cycle and other factors.

In addition, the impact of rising interest rates is on the investment field. Investors who invest in the stock market or futures market are worried about the impact of rising interest rates on the market. In order to avoid upcoming risks, they will choose to buy precious metals such as silver to preserve their value. /p>