SILVER PRICE FORECAST: XAG/USD SURRENDERS SOME INTRADAY GAINS AFTER UPBEAT US DATA
- Silver price drops from intraday high of $28.44 after resilient US Retail Sales data for July.
- Back-to-back decline in US jobless claims suggest that labor market conditions are not as worse as it was anticipated.
- Strong US Retail Sales have prompted a strong recovery in the US Dollar and bond yields.
Silver price (XAG/USD) gives up some of its intraday gains in Thursday’s New York session after the release of the resilient United States (US) Retail Sales data for July and lower-than-expected number of individuals claiming jobless benefits for the first time in the week ending August 9.
The white metal struggles to hold the crucial support of $28.00 as upbeat US data has boosted the US Dollar (USD) and bond yields. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, bounces back above 103.00. 10-year US Treasury yields soar to near 3.96%. Higher yields on interest-bearing assets weigh on non-yielding assets, such as Silver, by increasing the opportunity cost of holding investment in them.
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