Silver Plunges 5%: Why The Fed Is Killing The Surge

The Federal Reserve's hawkish monetary policy signals, particularly interest rate hike expectations, cause investors to pull capital from non-yielding assets like silver and gold, as these metals offer no interest or dividends; when the Fed signals rate increases, institutional investors systematically reposition portfolios away from precious metals, causing price declines even before actual rate hikes occur, as markets price in future monetary policy changes.