Silver prices fell in the European market on Friday, deepening their losses for the fifth day in a row, recording the lowest level in three months, about to incur the fifth weekly loss in a row, due to the new jump in the yield of US Treasury bonds for ten years.
Strong economic data in the United States reinforced the possibility of the Federal Reserve continuing to raise interest rates for as long as possible this year, in light of the resilience enjoyed by the US economy in the recent period.
Silver prices today
Silver metal prices decreased by 1.9% to $21.17, the lowest since November 29, from the opening level of trading at $21.57, and recorded the highest level at $21.58.
Yesterday, silver prices lost 0.2%, the fourth consecutive daily loss, due to the rise of the US dollar against a basket of global currencies.
Throughout the entire trading week, the prices of the white metal “silver” are down by 3.75% so far, about to incur the fifth consecutive weekly loss, within the longest series of weekly losses in 2023, specifically since late May 2022.
US bond yield
The yield of US Treasury bonds for ten years rose today by 1.6%, to extend its gains for the fourth session in a row, recording the highest level in three months at 3.927%, which puts heavy pressure on the prices of non-yielding assets, led by gold and silver.
This development in the US bond market comes with a succession of strong economic data in the United States, which strongly enhance the prospects for the Federal Reserve to continue tightening monetary policy and raising interest rates for the longest period this year.
This week’s data showed strong US retail sales, higher consumer and producer prices, and lower jobless claims, in the latest data indicating the resilience of the world’s largest economy.
Federal Reserve officials signaled this week that the US central bank should push ahead with rate hikes, with two policymakers saying Thursday that the central bank is likely to raise interest rates by about 50 basis points in March.
Those statements and comments raised the futures pricing for the odds of a 25 basis point hike in Fed interest rates next March to about 100%, and raised the futures pricing for the odds of a 50 basis point hike in March this week from 9% to 15%.