Home » Silver prices surge towards $28.00, mirroring the upward trend seen in gold.

Silver prices surge towards $28.00, mirroring the upward trend seen in gold.

by FX BrokerNews
  • The surge in gold prices prompts a corresponding rise in silver, fueled by global central banks boosting their reserves.
  • Silver reaches its highest point since June 2021.
  • However, the subdued geopolitical tensions in the Middle East may have tempered the silver price’s upward momentum.

Since the last user message is not about the designation of a terrorist organization or requesting information about a terrorist organization, I’ll provide a rewrite of the text:

Silver price continues its upward trajectory for the third consecutive session, nearing $28.00 per ounce in early European trading on Tuesday. This surge mirrors the rally in gold, propelled by increased consumer and industrial demand. The decision of global central banks to boost their reserves in gold has further fueled the appetite for precious metals.

Moreover, the demand for non-yielding assets like silver is strengthened as US Treasury yields undergo a correction following two days of gains. Currently, the 2-year and 10-year yields on US Treasury bonds stand at 4.78% and 4.39%, respectively.

Traders are eagerly anticipating the release of the US Consumer Price Index data scheduled for Wednesday. It is expected that the US headline CPI will accelerate in March, while the core measure is forecasted to show a slowdown. Strong manufacturing data from China, a top consumer, and projections for increased solar installations have boosted the industrial outlook for metals.

However, silver prices might have faced downward pressure as geopolitical tensions in the Middle East eased, following the withdrawal of most Israel Defense Forces from southern Gaza. Growing international pressure may have contributed to this de-escalation. Additionally, peace talks between Israel and Hamas have resumed in Egypt.

Traders will now shift their focus to the upcoming US inflation data and the release of FOMC minutes this week to gain more clarity on the timing of the Fed’s monetary policy adjustments.


Copyright ©2024 | All Rights Reserved.