Silver (XAG/USD) trades near $63.60 per ounce amid a recent pullback driven by hawkish Federal Reserve communications that reinforced expectations for sustained or higher policy rates, elevating real yields and supporting a stronger U.S. dollar. This has offset near-term gains from persistent structural supply deficits and resilient industrial demand, particularly from solar photovoltaics, electric vehicles, electronics, and AI-related infrastructure, which together account for over half of annual consumption. Traders monitor upcoming U.S. inflation data, labor market releases, and any FOMC signals for shifts in rate-path expectations, as these directly influence silver’s sensitivity to monetary conditions and risk sentiment. Market-implied odds reflect aggregated positioning on these macro and demand dynamics.