- The price of Silver appreciated while US Treasury yields declined following the release of the weak New York Empire State Manufacturing Index on Tuesday.
- The 2-year and 10-year US Treasury yields stand at 3.95% and 4.03%, respectively, at the time of writing.
- La Plata, as a safe haven, could be appreciated even more as Israel could intensify its ground operations against Hezbollah.
The price of Silver (XAG/USD) continues its winning streak for the fifth day in a row, hovering around $31.70 per troy ounce during Asian trading hours on Wednesday. Non-yielding Silver has found support as US Treasury yields declined in response to disappointing manufacturing data released on Tuesday.
New York’s Empire State Manufacturing Index unexpectedly fell 23 points to a reading of -11.9 in October, marking its lowest level in five months. This drop indicates a contraction in business activity in New York, following a growth reading of 11.5 in September.
The 2-year and 10-year US Treasury yields stand at 3.95% and 4.03%, respectively, at the time of writing. Lower yields increase the attractiveness of precious metals like Silver. However, last week’s strong US employment and inflation data have reduced expectations of aggressive easing by the Federal Reserve (Fed) in 2024.
Markets now forecast a total of 125 basis points in rate cuts over the next year. According to the CME FedWatch tool, there is currently a 94.1% chance of a 25 basis point rate cut in November, with no expectation of a reduction greater than 50 basis points.
On Tuesday, Federal Reserve Bank of Atlanta President Raphael Bostic stated that he anticipates only one more 25 basis point interest rate cut this year, as reflected in his projections during last month’s central bank meeting. “The average forecast was 50 basis points in addition to the 50 basis points already implemented in September, according to Reuters.
Silver prices are also receiving support from safe haven flows due to the ongoing uncertainty surrounding the conflict in the Middle East. Israel could intensify its ground operations against Hezbollah while strengthening its defenses. Reuters reports indicate that Israeli troops have cleared landmines and established new barriers along the border between the Israeli-occupied Golan Heights and the demilitarized zone adjacent to Syria.
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.
