Silver Remains Below $32 As US Yields Rebound Ahead Of US PCE Inflation
Silver prices continue to face selling pressure around $32.00. The white metal fell nearly 0.3% to near $31.70 in European trading hours on Thursday as US Treasury yields have bounced back after six consecutive days of declines ahead of the US Personal Consumption Expenditures (PCE) Price Index data for January, due on Friday.
The 10-year US Treasury yield rose 1.3% to near 4.31% at press time. Technically, higher yields on interest-bearing assets weigh on non-yielding assets, such as Silver.
Economists expect US core PCE inflation – which excludes volatile food and energy prices – to have slowed to 2.6% from 2.8% in December on an annualized basis. The monthly inflation reading is expected to grow by 0.3%, faster than the previous reading of 0.2%.
Investors will be watching the US core PCE inflation data as it will influence market expectations on the Federal Reserve’s (Fed) monetary policy outlook, the Fed’s preferred gauge of inflation.
Meanwhile, US President Donald Trump’s tariff agenda continues to support Silver prices. On Wednesday, Trump reiterated his threat to impose 25% tariffs on cars and other goods imported from the Eurozone.
On the geopolitical front, investors await a meeting of European leaders with UK Prime Minister Keir Starmer to discuss President Trump’s efforts to end the war in Ukraine.
Source: FXStreet
