(Kitco News) - The recent strength of the U.S. Dollar and the dramatic runup in Treasury yields have put considerable pressure on silver and gold, discouraging precious metals buying from investors holding other currencies, according to FX Empire’s James Hyerczyk.
Hyerczyk noted that spot silver prices hit two-week lows on Wednesday, bouncing off $23 an ounce around 11 am EDT. “This drop coincides with the U.S. dollar approaching a six-month high and a surge in U.S. Treasury yields,” he said. “The prevailing sentiment suggests an ongoing demand for high-interest rates, largely fueled by concerns surrounding China’s economic status and worldwide growth. Consequently, silver, similar to gold, becomes less accessible for those holding foreign currencies.
Hyerczyk noted that the CME FedWatch tool indicates a 93% chance of a hold at the next Fed meeting, but markets are wary of one or more potential hikes by the end of the year depending on what the data show. Hyerczyk said the combination of sky-high U.S. interest rates and Treasury bond yields with a strengthening U.S. dollar mean the short-term outlook for silver is solidly bearish. “The increased opportunity costs associated with retaining unyielding silver, in conjunction with impending policy shifts, cement a gloomy prediction for this precious metal,” he said.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Gold, silver down as USDX rallies, U.S. Treasury yields up-tickSenior Technical Analyst Jim Wyckoff prepares investors with an overview of how the markets opened and closed. What moved metal prices? How do the technicals look? By looking at important developments
Lire la suite »
Price pressure on gold, silver as USDX rallies, bond yields riseSenior Technical Analyst Jim Wyckoff prepares investors with an overview of how the markets opened and closed. What moved metal prices? How do the technicals look? By looking at important developments
Lire la suite »
Mild price weakness in gold, silver amid bearish chartsSenior Technical Analyst Jim Wyckoff prepares investors with an overview of how the markets opened and closed. What moved metal prices? How do the technicals look? By looking at important developments
Lire la suite »
Euro zone August downturn deeper than was thoughtKitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top newswires in the world including the Association Press, Canadian Press, Japanese Economic Newswire, and United Press International.
Lire la suite »
Sterling drops to 12-week low as business activity contractsKitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top newswires in the world including the Association Press, Canadian Press, Japanese Economic Newswire, and United Press International.
Lire la suite »
Rising demand for Fed bank lending program not a sign of stressKitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top newswires in the world including the Association Press, Canadian Press, Japanese Economic Newswire, and United Press International.
Lire la suite »