- Silver Price extends its losses due to recovery in the US Dollar (USD).
- Upbeat US Treasury yields could provide support in undermining the Silver asset.
- Elevated inflation figures could further reinforce the Fed’s hawkish tone, supporting the Greenback.
Silver price continues to lose ground on the second day, trading lower around $22.90 during the Asian session on Wednesday. The pair is experiencing downward pressure due to the improved US Dollar (USD).
Additionally, the upbeat US Treasury yields contributed to underpinning the strengthening of the Greenback ahead of the release of Consumer Price Index (CPI) data from the United States (US). The yield on the US 10-year bond improved to 4.28% by the press time, snapping the recent losses.
Any inflation aberration could further reinforce the hawkish sentiment following the likelihood of a 25 basis point (bps) interest rate hike by the US Federal Reserve (Fed) in either the November or December meetings.
Additionally, there's an expectation that the Fed will maintain higher interest rates over an extended period. These developments could potentially lead to a rise in the US bond yields, which may negatively impact the silver prices.
US CPI is expected to exhibit a 0.5% month-on-month improvement from the previous month's reading of 0.2%. Moreover, the Core CPI figure is anticipated to remain steady at 0.2%. These figures may provide valuable insights into inflation trends in the US economy and can have a significant impact on market sentiment and trading decisions about the Silver asset.
US Dollar Index (DXY), which assesses the performance of the US Dollar (USD) against a basket of the other major six currencies, trading higher around 104.70. DXY snaps the three-day losing streak.
Moreover, the robust Greenback is expected to maintain its resilience, primarily because it has the capacity to absorb the effects of higher interest rates. This strength can make the US Dollar (USD) more attractive to investors.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.