Silver Price Retreats on Rising Yields and Hormuz Tensions
The Silver price retreated to around $60.75 on Tuesday, losing 0.38% on the day.
This decline is attributed to a sharp rise in US Treasury yields and a stronger US Dollar (USD), as tensions surrounding the Strait of Hormuz keep Oil prices elevated and revive inflation concerns.
The benchmark 10-year US Treasury yield climbed to 5.28%, its highest level since 2007, driven by concerns that higher energy prices could keep inflationary pressures elevated in the United States and force the Federal Reserve (Fed) to maintain a restrictive monetary policy stance.
Despite weaker-than-expected US economic data released on Tuesday, including a decline in the Conference Board Consumer Confidence Index and JOLTS Job Openings, markets expect further rate hikes from the Fed after the 25-basis-point increase delivered earlier in September.