Fed Holds Rates Unchanged on June 23, Markets Price 70% Probability of Rate Hike by September

According to Heng Yin Futures research note released on June 23, the Federal Reserve maintained interest rates unchanged, with nine of 19 policymakers projecting at least one rate increase this year. Markets are pricing in approximately a 70% probability of a rate hike before September.

The Fed's hawkish stance is putting pressure on precious metals. The U.S. dollar index has climbed sharply in recent days, increasing the opportunity cost of holding non-yielding assets like silver, causing silver prices to remain under pressure.