Silver Trades Higher As Yields Decline

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Silver Trades Higher As Yields Decline

Silver (Xag/Usd) Crosses $31.50 As Bond Yields Decline

Silver (XAG/USD) has been consistently closing in green for the 5th day in a row. For now, Silver (XAG/USD) is seen to be near $31.70 on Wednesday, with eyes set on $32.00 and beyond.

One factor which is supporting the Silver (XAG/USD) is the bond yields which are now declining after the release of the manufacturing data.

Strong Us Jobs Data Means Smaller Rate Cuts

In October, the NY Empire State Manufacturing Index unexpectedly fell 23 points to -11.9, its lowest level in five months. This drop follows a growth reading of 11.5 in September, indicating a decrease in New York business activity.

Right now, the 2-year bond yields are sitting at 3.95% while the 10-year yields are near 4.03%. The weakness in the bond yields has also boosted the demand for white metal.

However, the US jobs data from last week was strong which means there's no actual need to deliver another 0.50% rate cut.

Markets are currently anticipating rate cuts of 125 basis points throughout the course of the upcoming year. The CME FedWatch Tool indicates that there is now no anticipation of a greater 50-basis-point rate decrease in November, with a 94.1% chance of a 25-basis-point cut.

Today, Fed Bostic also talked about how another rate cut will take place in 2024. According to him, it will be a 0.25% rate cut and will allow the US Federal Reserve to support the labor market.

According to , the median prediction was for an additional 50 basis points on top of the 50 basis points that had already been applied in September.

Overall, Silver prices are supported due to its safe-haven status, which is further reinforced by weakened bond yields. And once we get the next rate cut in November, Silver will further appreciate and even target the next levels at $33, $35, and $37.

We also need to remember that any strength in the Gold will also translate into strength for Silver and other precious metals.

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