Silver sharpens decline to three-month trough as US yields surge

Silver prices fell in European trade for the fifth straight session, plumbing three-month lows and heading for the fifth weekly loss in a row as US 10-year treasury yields rally anew. 

Recent strong US data bolstered the case for an extended campaign of interest rates hikes by the Federal Reserve as the economy showed flexibility. 

Prices Today

Silver prices fell 1.9% to $21.17 an ounce, the lowest since November 29, with a session-high at $21.58. 

Silver prices lost 0.2% yesterday, the fourth loss in a row as the dollar muscled up against major rivals. 

Weekly Trades

The white metal remains down 3.75% this week on track for the fifth weekly loss in a row, the longest such streak since May 2022. 

US Yields

US 10-year treasury yields rose over 1.5% today on track to hit a three-month high at 3.927%, and almost trading above 4% once more.

A spate of strong US data bolstered the case for multiple more Fed rate hikes this year and raised estimates for neutral interest rates from 5.25% to 6%.

Fed Remarks

Multiple Fed policymakers said this week there's a need to more rate hikes until inflation is brought back to 2%.

Cleveland Fed President Loretta Mister said there's enough cause to raise interest rates by a 0.5% once more, with similar statements from Saint Louis Fed President James Bullard.

Fed Rates

Pricing for a 0.25% rate hike by the Fed in March now stands at 100%, while pricing for a 0.5% rate hike in March rose from 9% to 15%.

Pricing for a 0.25% hike in May rose to 77%, while pricing for a 0.5% hike rose from 9% to 17%.