Advertisements
Home Silver Price Silver Price Stabilizes Following Hawkish FOMC Minutes, US Dollar Index Wavers(May 23)

Silver Price Stabilizes Following Hawkish FOMC Minutes, US Dollar Index Wavers(May 23)

by anna

Following a sharp decline during Thursday’s New York session, the price of silver (XAU/USD) has stabilized near $30.20. The notable downturn in the white metal was triggered by the release of hawkish Federal Open Market Committee (FOMC) minutes from the May policy meeting. These minutes revealed discussions among officials regarding the potential for interest rate hikes, as progress in addressing disinflation stalled in the first quarter of the year.

Despite the immediate impact of the hawkish FOMC communication on bullion prices, it is believed to be temporary. Policymakers’ views were largely influenced by stubbornly high inflation data from the first quarter of the year. However, April’s consumer price inflation data, which declined as expected, suggests that price pressures are on track to return to the desired rate of 2%.

Advertisements

Meanwhile, 10-year US Treasury yields have dropped to 4.42%, reflecting a softening in inflation data. This scenario is unfavorable for interest rates to remain higher for an extended period. A decrease in yields on interest-bearing assets reduces the opportunity cost of holding investments in non-yielding assets such as silver.

Advertisements

The US Dollar Index (DXY) has experienced a 0.2% decline, trading near 104.70. Investors are maintaining confidence that the Federal Reserve (Fed) will commence interest rate reductions starting from the September meeting.

Advertisements

Despite the United States Department of Labor reporting lower Initial Jobless Claims than estimated for the week ending May 17, the USD Index struggles to stabilize. The number of individuals claiming jobless benefits for the first time came in at 215K, below the estimated 220K.

Advertisements
Advertisements

You may also like

Lriko logo

Lriko is a gold portal website, the main columns include gold pricespot goldsilver pricespot silvergold futures, nonfarm payroll, gold basics, gold industry news, etc.

© 2023 Copyright  lriko.com