Silver price slumps to near $29.40, weighed down by higher yields.
Better-than-projected flash US PMI for August uplift bond yields and the US Dollar.
Going forward, investors will focus on the Fed Powell’s speech at the JH Symposium.
Silver price (XAG/USD) falls sharply to near $29.40 in Thursday’s North American session. The white metal weakens as the US Dollar (USD) rebounds and bond yields rise after better-than-projected preliminary United States (US) S&P Global PMI data for August.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, bounces back to near 101.45 from a more than seven-month low of 101.00. 10-year US Treasury yields surge to near 3.86%. Higher yields on interest-bearing assets weigh on non-yielding assets, such as Silver, given that they increase the opportunity cost of holding an investment in them.
The flash PMI report showed that the Composite PMI expanded at a faster-than-expected pace to 54.1 but remained below July’s reading of 54.3, driven by upbeat demand in the service sector. While the Manufacturing PMI declined sharply to 48.0. Economists already anticipated activities in manufacturing activities to contract but at a steady pace to 49.6.
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