By NewsBlogger Silver and gold prices fluctuate due to increased demand, geopolitical tensions in the Middle East, expectations of rate cuts from the Federal Reserve, and upcoming economic data releases.
At a glance
- Silver and gold prices fluctuate in response to global market factors.
- Silver price at $28.00 per troy ounce driven by increased demand and central bank reserves.
- US Treasury yields correction boosting demand for non-yielding assets like silver.
- Geopolitical tensions in the Middle East impact silver and gold prices.
- Expectations of rate cuts and central bank purchases supporting gold prices.
The details
Silver and gold prices have been experiencing fluctuations in response to various factors in the global market.
The silver price has risen to around $28.00 per troy ounce, driven by increased consumer and industrial demand and central banks’ increasing reserves of gold.
This surge in silver price is aligned with the rally in gold, with demand for non-yielding assets like silver boosted as US Treasury yields correct after two days of gains.
Market sentiment is also being influenced by the anticipation of the US Consumer Price Index data, which is scheduled for release on Wednesday.
On the geopolitical front, the easing of tensions in the Middle East, particularly between Israel and Hamas, has impacted silver prices.
The withdrawal of most Israel Defense Forces from southern Gaza has contributed to the relaxation of tensions, although peace talks have not yielded significant progress.
Meanwhile, expectations of rate cuts from the Federal Reserve and the decline in US Treasury yields support non-yielding assets like silver, while geopolitical tensions in the Middle East drive investors towards safe-haven assets.
In the gold market, prices are near $2,355 per troy ounce, with expectations of rate cuts from the Federal Reserve and central bank purchases contributing to the uptick.
Geopolitical tensions in the Middle East, particularly between Israel and Iran, also play a role in the rise of gold prices.
Major central banks, including China, have been purchasing gold, pushing the yellow metal to nearly an all-time high.
Gold traders are closely monitoring the upcoming US Consumer Price Index data and the release of the FOMC Minutes for insights into the inflation trajectory and the path of the Fed’s monetary policy.
Overall, market participants are cautious and closely watching incoming data for potential policy shifts that could impact the prices of silver and gold.
Factors such as strong Chinese manufacturing data, projections for increased solar installations, and labor market figures could influence market sentiment and the future direction of precious metal prices.
Traders will continue to focus on upcoming US inflation data and the release of FOMC minutes to gain more clarity on the timing of the Fed’s monetary policy adjustments.
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| fxstreet.com |
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| – Silver price has advanced for the third consecutive session, reaching near $28.00 per troy ounce during early European hours on Tuesday – The surge in Silver price is in line with the rally in gold, driven by heightened consumer and industrial demand – Global central banks increasing their reserves in gold have also contributed to the increased appetite for precious metals – Demand for non-yielding assets like silver is bolstered as US Treasury yields correct after two days of gains – The 2-year and 10-year yields on US Treasury bonds stand at 4.78% and 4.39%, respectively – Traders are awaiting the release of the US Consumer Price Index data scheduled for Wednesday – It is anticipated that the US headline CPI will accelerate in March, while the core measure is expected to show a cooling down – The industrial outlook for metals received a boost from strong manufacturing data from top consumer China and projections for increased solar installations – Silver price could have faced downward pressure as geopolitical tensions eased in the Middle East – The withdrawal of most Israel Defense Forces from southern Gaza has contributed to easing tensions – Peace talks between Israel and Hamas have yielded no progress in Egypt – Traders will shift focus to upcoming US inflation data and the release of FOMC minutes this week to gain more clarity on the timing of the Fed’s monetary policy adjustments |
| fxstreet.com |
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| – Silver price is exhibiting a sideways trend around $28.10 per troy ounce during the early European session on Wednesday – Expectations of rate cuts from the Federal Reserve could lead to further appreciation of Silver price – Decline in US Treasury yields is supporting non-yielding assets like Silver – Gold prices are increasing, which is supporting the price of Silver – Increased consumer and industrial demand is contributing to the positive sentiment surrounding Silver – China, Turkey, India, Kazakhstan, and several Eastern European countries have been purchasing gold, further supporting precious metals – Geopolitical tensions in the Middle East are driving investors towards safe-haven assets like Silver – Israel has issued warnings regarding potential attacks from Iran, leading to increased investor interest in Silver – Peace talks between Israel and Hamas have failed to make progress, adding to the geopolitical tensions – Investors are cautious and anticipating potential policy shifts influenced by incoming data – Strong labor market figures could prompt a more hawkish stance from the Federal Reserve – Inflation exceeding expectations could limit the upward momentum of Silver price |
| fxstreet.com |
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| – Gold Price (XAU/USD) is near $2,355 during early European trading hours on Wednesday – The uptick in gold is due to expectations of rate cuts from the Federal Reserve (Fed) this year – Central bank purchases and geopolitical tensions in the Middle East are also contributing to the rise in gold prices – Israeli foreign minister Israel Kat warned of retaliation if Iran attacks from its territory – Iran’s supreme leader said Israel “must be punished” for an apparent attack on an Iranian consulate building in Syria – Geopolitical tensions in the Middle East may boost safe-haven assets like gold – Major central banks, including China, have been purchasing gold, lifting the yellow metal to nearly an all-time high – China added 160,000 troy ounces of gold to its reserves in March, marking the 17th consecutive month of gold purchases – Turkey, India, Kazakhstan, and some eastern European countries have also been buying gold this year – Gold traders are closely monitoring the US Consumer Price Index (CPI) data for March and the FOMC Minutes, due on Wednesday – These events could provide insights about the inflation trajectory and the path of the Fed’s monetary policy – A firmer inflation reading might dampen expectations for Fed rate cuts in June and cap the gold’s upside – Softer inflation data could fuel speculation for rate reductions and provide support to XAU/USD |
