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Silver
Source: Newsmaker.id
Silver prices (XAG/USD) strengthened during Tuesday's trading (Oct 6), supported by a weakening US Dollar and falling Treasury yields. XAG/USD hovered around US$61.58 per troy ounce, having traded within a range of approximately US$60.28–US$61.72.
Silver's gains were bolstered by a pullback in the 10-year US Treasury yield to around 5.26%–5.27%, down from a peak of 5.35%—its highest level since 2002. Lower yields reduce the opportunity cost of holding non-yielding precious metals.
The US Dollar also began to weaken. The DXY stood at approximately 102.03, down about 0.14% from an earlier high of 102.54. The Greenback's decline served as an additional catalyst for silver, making the metal relatively cheaper for holders of other currencies.
Regarding monetary policy, expectations for a Federal Reserve rate hike in October have continued to decline following weaker-than-expected US labor market data. The probability of an October hike now sits in the 22%–24% range, leading the market to lean toward the view that the Fed will hold rates steady.
Nevertheless, pressure has not entirely dissipated. Inflation, US fiscal risks, and the possibility of further rate hikes continue to keep yields elevated. Comments from Fed officials remain mixed; Mary Daly has suggested that further hikes might not be necessary if pressures from tariffs, oil prices, and AI prove transitory.
Market focus has now shifted to the FOMC meeting minutes, which will provide key insights into the Fed's future policy direction. A more dovish tone could extend silver's rally, whereas indications of further rate hikes could once again weigh on prices.
Newsmaker Analysis:
Silver’s current momentum leans bullish in the short term, driven by a combination of a weakening US Dollar and a correction in Treasury yields. The US$61.70 level serves as the immediate resistance; a breakout above this could pave the way for further gains. Meanwhile, the US$60.30–US$60.50 zone remains a key support level. The FOMC Minutes will serve as the next major catalyst.
Source: Newsmaker.id