Energy of the US Greenback and Outlook for the Federal Reserve
The US greenback has remained robust, largely due to the Federal Reserve’s sign that it’s going to gradual the tempo of charge cuts in 2025. This shift in financial coverage has helped hold the U.S. greenback at a two-year excessive and has supported U.S. bond yields.
The yield on the 10-year U.S. Treasury observe not too long ago hit its highest level since Might, additional strengthening the greenback. Because of this, gold, which doesn’t yield the identical returns as bonds, faces headwinds regardless of its attraction as a secure haven.
Silver maintains momentum
Silver costs have additionally proven resilience, buying and selling round $29.68, with an intraday excessive of $29.79. Like gold, silver is benefiting from geopolitical uncertainty, which has boosted demand for valuable metals.
Whereas the energy of the US greenback usually places stress on silver costs, ongoing world uncertainties have saved investor demand intact. The steel’s attraction stays strong, with merchants trying to it as a refuge during times of volatility.
Geopolitical tensions gas the demand for secure havens
Geopolitical occasions proceed to extend market volatility, particularly within the Center East and Ukraine. Though these developments have contributed to market instability, they’ve additionally supported demand for secure havens reminiscent of gold and silver.
Traders are carefully watching US financial knowledge, together with the upcoming Richmond Manufacturing Index, which may affect USD strikes and supply additional steerage in a market characterised by low liquidity as a result of vacation season.