- Silver price loses ground due to robust performance of the US Dollar (USD) and rising Treasury yields.
- The US dollar gains ground as recent data reinforces the chances of the Fed adopting a less dovish rate policy.
- Silver could appreciate due to market caution amid uncertainties regarding the upcoming US presidential elections.
The price of Silver (XAG/USD) extends its losses for the third consecutive session, trading around $33.50 during Asian hours on Friday. The fall in the price of the precious metal Silver could be attributed to the robust performance of the US Dollar (USD) and rising Treasury yields.
On Thursday, data indicated that US jobless claims fell significantly in late October, underscoring the strength of the labor market. Additionally, an increase in the S&P PMI further highlights the strong momentum in the private sector.
Strong US economic data reinforces the likelihood that the Federal Reserve (Fed) will take a less aggressive approach to interest rate cuts than previously thought. According to the CME FedWatch tool, there is a 97% chance of a 25 basis point rate cut by the Fed in November, with no expectation of a cut larger than 50 basis points.
Despite the challenges, safe haven Silver could find upside support due to uncertainties surrounding the upcoming US presidential election. A recent Reuters/Ipsos poll showed Vice President Kamala Harris with a slight lead in the 46% to 43% over former President Donald Trump in a six-day poll that concluded Monday.
The price of Silver could gain support from safe haven flows amid uncertainties regarding the situation in the Middle East. Traders are watching Israel’s response to Iran’s Oct. 1 missile attack. In parallel, US and Israeli officials are preparing to resume talks on a possible ceasefire and the release of hostages in Gaza in the coming days.
US Secretary of State Antony Blinken stated on Thursday that the United States does not support a prolonged Israeli campaign in Lebanon, while France has advocated for an immediate ceasefire and diplomatic efforts.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
