Silver Surges Ahead of Fed Decision
The price of Silver (XAG/USD) has surged to nearly $64.80 ahead of the Federal Reserve's interest rate decision, reflecting investor confidence in a strong economic outlook.
The Fed is expected to deliver at least two interest rate hikes this year, with investors awaiting the monetary policy statement and Chairman Powell's press conference for guidance on inflation and economic prospects.
According to the CME FedWatch tool, there's an almost 79% chance that the Fed will raise interest rates by 25 basis points (bps) to 3.75%-4.00%, backed by a sticky US Consumer Price Index (CPI) report for August.
The scenario of interest rate hikes bodes well for US Treasury Yields, which could diminish the appeal of non-yielding assets like Silver, currently trading at $64.80 and holding below its 20-day Exponential Moving Average (EMA) at $65.12.