Silver Price Soars Past Two-Month High Amid US Treasury Bond-Buyback Plan
The silver price surged to a two-month high above $67 after the US Treasury's larger bond-buyback plan revived precious-metals demand, but profit-taking emerged.
Silver prices pushed through the mid-$60s on Thursday following Wednesday's powerful rally. The metal reached $67.11 before easing to around $66.66, leaving it 0.46% lower on the day, yet still 3.20% higher over five sessions.
The latest move was triggered by the US Treasury's decision to at least double some bond-buyback operations at the long end of the curve. This announcement pulled Treasury yields and the Dollar lower, providing a boost to non-yielding assets and helping silver outperform gold.
According to TD Securities' Gennadiy Goldberg, 'the first of many possible actions' may be taken by the US Treasury to support the long end. However, the rally has since encountered profit-taking as hawkish elements in the Federal Reserve minutes reminded investors that another rate increase has not been ruled out.