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Silver
Source: Newsmaker.id
The price of silver (XAG/USD) rose by nearly 3%, trading around US$53 per ounce during European trading hours on Wednesday (November 11). This gain occurred even as the market increasingly debated the possibility of a larger interest rate hike by the Federal Reserve in December, following US October CPI data that revealed higher-than-expected inflationary pressure.
The CPI data served as the primary catalyst for movements in the bond market. Core CPI for October rose by 0.3% month-on-month—exceeding the 0.2% expectation—marking the third consecutive month of 0.3% increases. Deutsche Bank noted that the three-month annualized pace for core CPI has reached approximately 3.75%, the fastest rate since April 2024.
Meanwhile, the headline CPI also showed stronger pressure, with a monthly increase of about 0.35%, compared to the 0.3% expectation. On a three-month annualized basis, the pace reached approximately 5.72%, further fueling concerns that inflationary pressure has not yet fully subsided.
This data triggered a sell-off in the Treasury market, pushing yields higher across various tenors. The 10-year US Treasury yield climbed by approximately 2.4% toward the 5% level—a development that, in theory, should exert downward pressure on silver, as the metal does not generate a yield.
Nevertheless, silver managed to strengthen despite rising yields and expectations of a tighter Federal Reserve policy. This movement suggests that other supporting factors remain at play, capable of offsetting the pressure stemming from interest rates.
Newsmaker Analysis: The current movement of silver presents an intriguing scenario. On one hand, persistent inflation and high yields exert downward pressure; yet, on the other, the price has managed to hold its ground and climb. Moving forward, the market will be watching closely to see whether this momentum can be sustained as expectations for a Federal Reserve rate hike are increasingly factored in. (arl)
Source: Newsmaker.id