Silver prices saw an uptick of 0.28% on Monday, buoyed by falling yields in US Treasuries and a softer US Dollar. The lack of major economic data releases in the US has left investors focused on the upcoming Consumer Price Index (CPI) report scheduled for May 15. However, before that, traders are anticipating Fed Chair Jerome Powell’s speech on Tuesday, which could provide further market direction.
The XAG/USD was trading at $28.22 after hitting a low of $27.97 earlier in the session. The recent gains in silver highlight the metal’s sensitivity to changes in US economic indicators and monetary policy signals. Lower yields on US Treasuries typically decrease the opportunity cost of holding non-yielding assets like silver, making it more attractive to investors. Additionally, a softer dollar makes dollar-denominated commodities like silver cheaper for holders of other currencies, thereby boosting demand.
Market participants will be keenly watching Powell’s speech for any hints on the Federal Reserve’s future policy moves, which could have significant implications for both the US Dollar and precious metals markets.
