Silver prices (XAG/USD) are in proximity to $22.70 as the U.S. dollar index (DXY) faces challenges in extending its recovery, while ongoing tensions in the Middle East contribute to safe-haven flows. Despite bouncing back from two-month lows of $22.43, silver is yet to convince investors of a substantial recovery.
S&P 500 futures remained flat in the Asian session, reflecting cautious market sentiment. The U.S. dollar index showed range-bound movement on Thursday due to the absence of prominent economic indicators. The 10-year Treasury yield approached 4.17%.
Investor attention has shifted to the upcoming Federal Reserve (Fed) monetary policy meeting scheduled for January 31. The Fed is expected to maintain interest rates in the range of 5.25-5.50%. The focus will be on the Fed’s interest rate guidance as it contemplates its first rate cut following the most rapid “rate tightening” campaign in history.
On Thursday, Atlanta Fed President Raphael Bostic suggested that the central bank could expedite announcements if it receives “compelling” evidence of inflation returning to its 2% target. Bostic cautioned against premature rate cuts, emphasizing the potential negative impact on inflation control efforts by stimulating overall demand and increasing price pressures.
