Advertisements
Home Silver Price Silver Price Holds Firm Near $27 Amid Dollar Weakness

Silver Price Holds Firm Near $27 Amid Dollar Weakness

by anna

In Thursday’s European session, the price of silver (XAG/USD) has found support around the $27 mark following a recent downturn. The decline in the value of the US Dollar has contributed to renewed buying interest in the white metal.

The correction in the US Dollar Index (DXY) to around 105.60 comes after the release of the S&P Global United States preliminary PMI for April, which indicated a decline in new business inflows for the first time in six months. This development has cast doubts on the strength of the economic outlook. However, despite this correction, the broader outlook for the US Dollar remains intact, with Federal Reserve (Fed) policymakers emphasizing the continuation of current policy measures due to strong labor demand and persistent inflationary pressures.

Advertisements

Looking ahead, the US Dollar’s performance will be closely watched with the release of Q1 preliminary Gross Domestic Product (GDP) data at 12:30 GMT. Analysts estimate a 2.5% expansion in the US economy, slower than the 3.5% growth recorded in the previous quarter. A robust GDP figure could bolster speculation for a soft landing by the Fed, aiming to achieve price stability without triggering a recession.

Advertisements

Meanwhile, 10-year US Treasury yields are trading near 4.65%, showing signs of consolidation ahead of the release of the US core Personal Consumption Expenditure Price Index (PCE) data for March on Friday. This inflation data will play a crucial role in shaping market expectations regarding the timing of potential interest rate adjustments by the Fed. Higher bond yields typically diminish the appeal of non-yielding assets like silver, as they increase the opportunity cost of holding such investments.

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