Soft Dollar Boosts Gold and Silver Amid Easing Energy Prices
The US Treasury yields and the dollar have eased following the FOMC announcement, allowing gold and silver to recover from their recent losses. The 10-year U.S. Treasury yield has fallen to 4.96% on Friday, reducing some of the headwinds for gold and silver.
Easing energy prices and the 2-year/10-year Treasury inversion are also expected to be bullish for metals. However, rising interest rates remain a concern for both gold and silver, as they can negatively impact the economy and industry.
The price of oil has decreased due to increased crude oil shipments through the Strait of Hormuz by Saudi Arabian officials. This reduction in oil prices means less chance of a large increase in inflation, which could lead to further rate hikes by the Federal Reserve.