Silver prices have dipped to a two-week low as bond yields climb, anticipating the Federal Reserve's (Fed) upcoming policy decision. The market expects the Fed to lower interest rates by 25 basis points on Wednesday but anticipate slightly hawkish remarks regarding future rate expectations.
Silver price slumps to near $30.30 in Tuesday’s European session. The white metal weakens as bond yields stay firm on expectations that the Fed eral Reserve ( Fed ) will signal fewer interest rate reductions in 2025 after reducing key borrowing rates by 25 basis points (bps) to 4.25%-4.50% in the monetary policy meeting on Wednesday. 10-year US Treasury yields extend theirwinning streak for the seventh trading day on Tuesday, rises to near 4.42%.
Higher yields on interest-bearing assets bode poorly for non-yielding assets such as Silver as they increase their opportunity cost. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, moves higher around 107.00. According to a Bloomberg survey, the Fed is expected to cut interest rates three times in 2025. Fed’s policy-easing cycle would be more gradual as economists worry about rising upside risks to inflation than downside risks to employment. Investors will pay close attention to Fed Chair Jerome Powell’s press conference to get cues about to what extent policies by incoming US President Donald Trump, such as immigration, trade and taxes, will influence inflationary pressures and interest rates. Silver technical analysis Silver price refreshes a two-week low near $30.30 on Tuesday. The white metal weakens after breaking below the 20-day Exponential Moving Average(EMA), which trades around $31.00. The 14-day Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, suggesting a sideways trend. Looking down, the upward-sloping trendline around $29.50, which is plotted from the February 29 low of $22.30 on a daily timeframe, would act as key support for the Silver pric
SILVER FED BOND YIELDS INTEREST RATES COMMODITY MARKET
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