Silver Price Analysis: XAG/USD rejected by the 200-day SMA as US yields recover

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Silver Price Analysis: XAG/USD rejected by the 200-day SMA as US yields recover
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In Tuesday’s session, the Silver Spot price XAG/USD lost momentum and failed to conquer the 200-day Simple Moving Average. The main reason was that th

The benchmark US 10-year bond yield threatens multi-year highs.price XAG/USD lost momentum and failed to conquer the 200-day Simple Moving Average. The main reason was that the US Treasury yields, often seen as the opportunity cost of holding non-yielding metals, recovered as markets await Wednesday's Federal Reserve decision.

The 10-year bond yield reached 4.34% and trades near the crucial 4.36% threshold, which, in case of breaking it, would set a multi-year high since 2007. In addition, The 2-year yield stands at 5.08% with a 0.52% increase, while the 5-year yield is at 4.48%, up by 0.31%. For Wednesday's Federal Reserve decisions, despite markets anticipating a pause, a hawkish tone given by Chair Powell could boost US yields and apply further pressure on the grey metal. The US economy remains strong, mainly driven by the Services sector, while the US labour market is showing a mixed picture, and as the Fed want to see a cool down to mitigate inflation risks, it will likely leave the door open for one last hike.

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