Forex
US-Iran Deal Sends Silver Prices Soaring, But Dollar Strength Holds Back Gains
Silver prices have steadied near $94.00 as oil prices ease following reports of a potential US-Iran agreement, mediated by Qatari officials.
Despite this reprieve in energy costs, silver faces significant headwinds from a strengthening US Dollar and surging Treasury yields.
The 30-year US Treasury yield surged to its highest mark since June 2004 at 5.501%, while the benchmark 10-year Treasury yield rose to 5.223%, its highest level since June 2007.
Economists at ING highlight that US borrowing costs have moved higher as markets respond to elevated energy prices and a belief that the Federal Reserve is set to tighten policy and keep interest rates higher for longer.