- The price of Silver gains ground on expectations of Fed rate cuts in 2024.
- Silver appreciates as US Treasury yields decline.
- Israeli Foreign Minister Israel Katz said they would retaliate if Iran attacked their territory.
The price of Silver is trending sideways with positive sentiment to extend its gains for the fourth consecutive session, hovering around $28.10 per troy ounce during the early hours of the European session on Wednesday.
The price of Silver could appreciate further on expectations of rate cuts by the Federal Reserve (Fed) this year. Falling US Treasury yields provide support for assets like Silver, as 2-year and 10-year US Treasury yields sit at 4. 74% and 4.36%, respectively, at the time of writing.
Furthermore, the price of Silver follows the upward movement of Gold prices, supported by the increase in consumer and industry demand. The addition of 160,000 troy ounces of Gold to China's reserves in March, along with purchases of Gold by Turkey, India, Kazakhstan and several Eastern European countries this year, further contribute to the positive sentiment surrounding the precious metals.
The escalation of geopolitical tensions in the Middle East is driving investors towards safe-haven assets such as Silver. Israeli Foreign Minister Israel Katz warned that Israel would retaliate if Iran attacked its territory. Furthermore, peace talks between Israel and Hamas in Egypt have failed to make progress.
Investors are taking a cautious stance, anticipating possible policy changes influenced by incoming data. Last week's strong labor market numbers could prompt a tougher stance from the Federal Reserve if inflation exceeds expectations. This could limit the bullish momentum in the price of Silver.
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.
