Silver Prices Steady As Fed Dovishness Deepens
Silver prices held steady around $30.70 per troy ounce during the Asian session on Thursday (16/1). The non-yielding metal gained support as lower-than-expected US underlying inflation in December fueled speculation that the US Federal Reserve (Fed) could implement two interest rate cuts this year.
Meanwhile, the yields on the 2-year and 10-year US Treasury bonds were at 4.27% and 4.66%, respectively, at the time of writing. Both yields fell more than 2% on Wednesday. Moreover, the US Dollar Index (DXY), which measures the performance of the US Dollar (USD) against a basket of six major currencies, was trading near 109.00, extending its decline for the fourth straight session. A weaker USD makes the precious metal more affordable for buyers using foreign currencies, which boosts demand for Silver.
US CPI rose 2.9% year-on-year in December, up from 2.7% in November, in line with market expectations. Monthly CPI rose 0.4%, following a 0.3% increase in November. US Core CPI, which excludes volatile food and energy prices, rose 3.2% year-on-year in December, slightly below the previous month's 3.3% and analysts' forecasts of 3.3%. Core CPI edged up 0.2% month-on-month in December 2024.
Source: FXStreet
