Silver trades near $29.50 low
Silver (XAG/USD) prices traded cautiously near Friday’s (12/30) low around $29.50 in thin volumes before the New Year on Monday. The white metal was broadly under pressure as the US Dollar (USD) outlook remained firm on expectations that a moderate policy easing cycle by the Federal Reserve (Fed) in 2025 would keep US Treasury yields elevated.
The 10-year US Treasury yield fell 0.5% in the European session on Monday but is still almost 15% higher this calendar year near 4.60%.
The US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, edged lower but remained broadly sideways around 108.00.
Market speculation that the Fed will follow a slower rate-cutting path next year stems from the central bank's latest dot plot, which showed that policymakers collectively see the federal funds rate heading towards 3.9% by the end of 2025.
Source: FXStreet
