The rally in silver prices has been fueled by a sudden reversal in US Treasury yields. Following a gain of 15 basis points over the past two trading days, the US 10-year benchmark note has seen a notable decline to 4.37%, shedding five bps. This downward trajectory in yields, coupled with a softer Greenback, has provided significant impetus to silver’s upward movement, surpassing the $28.00 threshold.
Geopolitical tensions have also played a pivotal role in bolstering demand for safe-haven assets, including silver. Israel Prime Minister Benjamin Netanyahu’s announcement regarding the ongoing military operations against Hamas brigades, coupled with Hamas’ rejection of Israel’s ceasefire proposal, has heightened market uncertainties, contributing to the appeal of precious metals.
Market participants are eagerly anticipating the release of the latest inflation report in the United States (US), particularly the Consumer Price Index (CPI) data. While expectations suggest a slight easing in monthly CPI figures, year-over-year figures are anticipated to surpass those of February. Additionally, Core CPI readings are projected to show declines in both monthly and yearly comparisons.
Federal Reserve policymakers have also been actively engaged, with Minnesota Fed Neil Kashkari emphasizing the central bank’s commitment to combatting inflation. Kashkari’s remarks underscore the Fed’s stance amidst evolving economic conditions and inflationary pressures.
As silver prices continue to surge amidst geopolitical uncertainties and shifting market dynamics, investors remain attentive to developments in the precious metals market and broader economic indicators. The intersection of geopolitical events, monetary policy decisions, and economic data releases will likely dictate silver’s trajectory in the days ahead.
