- Silver pulls back from session highs as markets lookout for a stimulus deal development.
- US dollar picking up a bid as markets brace for the potential of no breakthrough.
The price of silver has been under pressure in the closing hour of Wall Street.
At the time of writing, XAG/USD is trading at $24.7504 having risen some 1.49% between a range of $24.3231 and $24.9254.
As it stands, the pressure is on for a fiscal stimulus deal to be agreed today.
Nancy Pelosi said that the Democrats and the White House had moved closer to a coronavirus stimulus agreement ahead of her Tuesday afternoon call with Steven Mnuchin.
The call was scheduled for 1900 GMT, so it should be underway at the time of writing.
There had been a positive sentiment on Wall Street for the best part of the day until the closing hour where stocks started to falter and the greenback picked up a bid.
Despite the sides coming closer to finding common ground on Covid-19 testing, the division on state and local government relief and liability protections for businesses is undermining risk sentiment into the close.
The election countdown is on also and it would appear that investors have largely priced in a Blue Wave( Democrats winning landslide), consistently with polls and betting odds.
The greenback is expected to stay under pressure with the odds of a Biden victory resulting in a far bigger stimulus regime over the term of a new President, which is bullish precious metals.
''We think this is reflected in the bear steepening in the Treasury curve, weaker USD and higher equities. In fact, we argue that a Democratic sweep would result in more fiscal stimulus, which should bear steepen the Treasury curve, and on net could result in marginally higher long-term real rates as inflation breakevens rise a nudge less than nominal rates,'' analysts a TD Securities argued.
The analysts at TDS explained that a global reflation helps fuel weakness in the broad USD, while conversely, a more significant rise in rates would likely push the Fed to increase the weighted average maturity of their Treasury purchases, which would help to suppress real yields once again.
''In this context, the balance of risks remains tilted to the upside in precious metals,'' they said.
Silver levels
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