Impact of US Economic Factors on Silver Price
In the U.S., the Federal Reserve’s commitment to prolonged higher interest rates persists amid ongoing inflation concerns. This stance follows robust consumer inflation data and hawkish remarks from Fed officials, solidifying market expectations of no rate cuts until at least September.
Consequently, non-yielding metals like silver face a ceiling on their prices, as elevated interest rates diminish their appeal compared to interest-bearing assets.
On the economic front, the initial estimate of U.S. GDP for Q1 is anticipated to reveal a growth rate of 2.5%, a slowdown from the previous quarter’s 3.4%. Concurrently, Durable Goods Orders surged by 2.6% in March, signaling some positive momentum in the manufacturing sector.
However, excluding transportation, new orders only rose by 0.2%, highlighting a more tempered growth trajectory.
Impact of Easing Geopolitical Tensions and Iran’s Military Reduction on Silver Price
The diminishing concerns over escalating tensions in the Middle East have influenced a shift in global risk sentiment, impacting the demand for safe-haven assets such as silver. As geopolitical uncertainties ease, investors are less inclined to seek refuge in silver and similar assets, opting instead for riskier investments with potentially higher returns, like stocks or real estate.