Silver Price Forecast: XAG/USD extends losses to near $31.00 due to market caution

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Silver News

XAGUSD,Commodities,Macroeconomics

Silver price continues to lose ground for the third consecutive day, trading around $31.10 per troy ounce during the European session on Friday.

Silver price continues to lose ground as traders exercise caution ahead of US Core PCE. US Treasury yields appreciate due to the hawkish Fed, which weakens the demand for non-yielding Silver. The higher US Dollar impacts the grey metal demand as it becomes more expensive for foreign buyers. The hawkish remarks from Federal Reserve officials have raised concerns about potential rate hikes. Higher interest rates are negatively impacting non-yielding assets like Silver.

80 with 2-year and 10-year yields on US Treasury bonds standing at 4.94% and 4.56%, respectively, by the press time. On Thursday, the US Gross Domestic Product Annualized for the first quarter was revised lower to 1.3% from 1.6%. Additionally, US weekly Initial Jobless Claims for the week ending on May 2 rose to 219,000 from the previous week's 216,000, slightly exceeding the market consensus of 218,000.

 

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