Silver is confronted with the pressure as the treasury yields rise
Silver (XAG/USD) experiences headwind and acts around $ 31.48, after reaching an intra-day low of $ 31.13. In contrast to gold, Silver is struggling to retain profit, largely because of the strengthening of the US dollar and higher treasury yields. The Benchmark 10-year yield has returned to 4,541%, which is a reflection of investor caution in the midst of persistent inflation problems.
Although Silver also benefits from the demand for safe haven, its performance remains closely linked to industrial activity, making it more vulnerable to economic delays. The decision of the Federal Reserve to maintain current interest rates has contributed to dollar strength, which means that non-revenue assets such as silver are less attractive.
Traders are now waiting for the release of the pre -price index of the US Personal Consumption Expenditures (PCE), the preferred meter of the FED, for further direction. A higher than expected reading can reinforce the limiting attitude of the central bank, allowing pressure to be added to silver prices.
Economic data and market front views
The last American GDP report showed 2.3% growth in Q4 2024, with the 2.7% prediction and highly lower than 3.1% missing in Q3, so that concern about the economic momentum was pronounced. Despite the delay of growth, the unemployment claims fell to 207k, which signaled the resilience of the labor market.
In the meantime, Trump’s warning for 100% rates for BRICS countries has further fueled the dependence on the US dollar. Investors are closely kept to geopolitical developments and upcoming PMI data in Chicago, which can provide insight into business sentiment and wider market trends.
Gold and silver remain sensitive to economic shifts, where inflation data will probably dictate the next market movement.