Fed on Hold, Silver on Hold?
Silver bulls are taking a cautious stance after hawkish comments from Federal Reserve officials, including Minneapolis Fed President Neel Kashkari. Kashkari suggested a December rate cut as the most likely scenario, dampening hopes for a near-term policy shift. While the Fed held rates steady last week, it did acknowledge the possibility of a single cut in 2024. However, Kashkari emphasized the need for further evidence of declining inflation before the central bank loosens its grip on monetary policy.
Treasury Yields Up, Silver Down?
U.S. Treasury yields ticked higher on Monday as the market digested Kashkari’s comments and priced in a later rate cut. Higher yields make non-interest-bearing silver less attractive compared to the returns offered by bonds.
Silver’s Potential Upside
Despite the current headwinds, silver could still benefit from a…
