The US Dollar Index (DXY) climbed to 104.20, the highest level in two weeks, putting raw materials under pressure priced in dollars. In the meantime, the American 10-year-old Treasury yield rose to 4.35%, which reduces the attractiveness of the gold.
Silver is steady despite market volatility
Unlike Gold, Silver (XAG/USD) showed resilience, trading at $ 31.68 with an intra-day high point of $ 31.75. The metal benefits from its dual role as both a safe port active and an industrial raw material, so that stability can maintain, despite the decline of Gold.
“The industrial demand component of Silver, in particular in the solar and technological sectors, offers a fundamental level of support,” said David Meger, director of metals acting at Futures High Ridge.
Long -term high American interest rates, however, remain a risk, so that the profit of Silver may be closed.
Trade rates and inflation -fears weigh on the market sentiment
The implementation of new American rates – 25% on Mexican and Canadian import and a levying of 10% on Chinese goods – caused concern about an escalating trade war. Canada responded with retribution rates, while China indicated potential countermeasures.
Moreover, US economic data continue to emphasize inflation risks. The ISM production PMI fell to 50.3 in February from 50.9, which indicates slow growth, while the prices in the index have risen to the highest level since mid-2021, which strengthens expectations that inflation remains persistent.