XAU/USD established 0.05% lower at $ 2,909.55, with precious metals under pressure as the treasury is delivered. The Benchmark 10-year yield climbed two basic points to 4.303%, while the return of 2 years rose to 3,987%. Higher yields increase the opportunity costs of keeping non-return assets such as silver and gold.
Weaker banengates support the expectations of the speed reduction
The US Non -Farm Payrolls report of February showed the job growth of 151,000, under the expected 160,000, while the unemployment rate tapped up to 4.1%. The data strengthened the expectations that the Federal Reserve will lower the interest rates in June.
The American dollar index fell by 0.4% to 103.72 on Friday, and hit a lowest point in four months and marked the steepest weekly decrease since November 2022. Traders now praise in about 78 basic points of the gears of the fed this year, equal to three 25-based reductions. A weaker dollar usually increases silver prices by making it more affordable for foreign buyers.
China’s gold purchases offer extra support
China continued its gold purchases for the fourth consecutive month in February, according to data from the People’s Bank of China. Strong Central Bank Gold Ating has supported silver, given the historical correlation with gold as a monetary metal.
Market front views: silver faces resistance of yields but retains bullish setup
Silver remains supported by Safe-Havenstroom and expectations of reducing the fed, but is confronted with resistance in the short term of the proceeds from the fixed treasury. With the FED that indicates a cautious approach to policy dependence, the market will look closely in inflation and employment data in the coming weeks.