Silver and Gold Prices Dip as Fed Raises Interest Rates Amid Middle East Tensions

Silver and gold prices fell on Monday following the Federal Reserve's decision to raise interest rates by 25 basis points last week. According to FX Street, silver prices stalled at the 100-day Simple Moving Average (SMA) of $66.39, closing the session at $66.03 after hitting a high of $67.05, marking a loss of 0.39%. Meanwhile, gold prices retreated by over 0.6%.

The US Dollar strengthened, with the US Dollar Index recovering some ground despite falling Treasury yields. Boston Federal Reserve President Susan Collins cited the resumption of hostilities in the Middle East as a significant factor supporting the recent rate hike, highlighting geopolitical risks as influencing monetary policy decisions, FX Street reported.

For Japanese investors, these developments underline the ongoing impact of global geopolitical tensions and US monetary policy shifts on precious metals and currency markets, which remain key considerations for portfolio diversification in the current environment.