Silver nears seven-month low of $61 as Treasury yields surge
Silver traded near $61 per ounce, approaching a seven-month low, as US Treasury yields rose following the Federal Reserve's first meeting under Chair Kevin Warsh.
Silver traded near $61 per ounce, marking a seven-month low, as US Treasury yields rose following the Federal Reserve's first meeting under Chair Kevin Warsh [1]. The XAG/USD pair declined as the 2-year Treasury note yield climbed for another day after jumping Wednesday in reaction to the conclusion of Warsh's inaugural policy meeting [2].
The metal's decline reflects the inverse relationship between commodity prices and real interest rates. Higher Treasury yields increase the opportunity cost of holding non-yielding assets like silver, reducing their appeal to investors. The move lower from recent highs indicates a repricing of Fed policy expectations, with market participants now anticipating a more hawkish stance on rates under the new chair.
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