Because of declining US Treasury yields and predictions of rate cuts from major central banks, silver prices remain stable at $31.64. The short-term price trajectory of silver will be greatly influenced by upcoming US economic releases, such as Retail Sales and Jobless Claims. Demand for silver as a safe-haven asset is rising due to the Fed’s 94.1% possibility of cutting interest rates by 25 basis points in November.
As the US dollar rose, silver prices (XAG/USD) paused a two-day rally on Thursday, falling marginally to $31.64. Falling US Treasury yields, with the 2-year bond yield at 3.94% and the 10-year yield at 4.03%, continue to boost the metal, nonetheless.
Investors are more drawn to non-yielding assets like silver as a result of the yield decrease. With forecasts that the Federal Reserve will lower interest rates by 125 basis points over the course of the next year, market sentiment also favours silver. There is a 94.1% chance of a 25 basis point rate drop in November, according to the CME FedWatch Tool.
Also Read:
India Becomes the fourth Nation to Surpass $700 Billion in Foreign Exchange Reserves
