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Silver
Source: Newsmaker.id
Silver prices (XAG/USD) faced significant downward pressure during Monday's trading (Sept 28), falling approximately 5% to their lowest level since early August. XAG/USD hovered around $61.08 per ounce as a strengthening US dollar and rising Treasury yields diminished the appeal of non-yielding metal assets.
The rise of the 10-year US Treasury yield to its highest level since 2007, combined with the dollar index nearing a two-month high, exerted major pressure on silver. Higher yields increase the opportunity cost of holding precious metals, while a strong dollar makes silver more expensive for global investors.
Market sentiment was also influenced by uncertainty surrounding the US-Iran conflict, which kept oil prices elevated and reinforced expectations of further interest rate hikes by the Federal Reserve. Markets now estimate a roughly 70% probability of a rate hike in October, following a 25-basis-point increase at the September meeting.
Investors will now closely monitor key US economic data, including the PCE inflation report, ISM Manufacturing PMI, and Nonfarm Payrolls (NFP). These figures will help determine the Fed's policy direction and provide insight into the future outlook for precious metals.
Newsmaker Analysis:
Silver's current movement indicates that macroeconomic factors remain the primary market drivers, outweighing geopolitical sentiment. Although Middle East tensions typically support safe-haven assets, the rise in US Treasury yields, dollar strength, and expectations of Fed rate hikes have kept downward pressure on precious metals dominant. Moving forward, silver's trajectory will heavily depend on US economic data—particularly PCE inflation and labor market figures—as these results could determine whether the Fed continues its tight policy stance or begins to allow room for easing.
Source: Newsmaker.id