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Silver Rises as US Treasury Yield Rally Pauses
Friday, 3 January 2025 00:05 WIB | MARKET ANALYSIS |SILVER

Silver (XAG/USD) prices started 2025 on a strong note. The white metal gained nearly 1.50% in the European session on Thursday (02/01) and rose to near $29.40. The asset gained as the rally in US bond yields stalled after surging more than 10% in the past four weeks
The 10-year US Treasury yield dipped to near 4.55%. Lower yields on interest-bearing assets suggest a lower opportunity cost for non-yielding assets, such as Silver, which increases its appeal.
Meanwhile, the US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, traded sideways near a more than two-year high of 108.50.
The outlook for the US Dollar and bond yields is expected to remain strong as the Federal Reserve (Fed) is widely expected to deliver fewer interest rate cuts this year as officials are optimistic about the path of the economy. Market participants are also optimistic about the prospects for US growth under President-elect Donald Trump, as his policies, such as immigration controls, higher import tariffs and lower taxes, are likely to boost overall economic activity.


As of press time, Silver was at $29,565

Source; Newsmaker.id

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