Silver price climbs to near $33.00 as traders brace for fierce us Trump-Harris battle.
Lower US bond yields have prompted a strong recovery in the Silver price.
The Fed is expected to cut interest rates by 25 bps on Thursday.
Silver price (XAG/USD) soars to near $33.00 in Monday’s North American session. The white metal strengthens as US Treasury yields dive, with investors turning anxious ahead of the United States (US) presidential elections on Tuesday.
10-year US Treasury yields plummet to near 4.27%. Lower yields on interest-bearing assets reduce the opportunity cost of holding an investment in non-yielding assets, such as Silver. The US Dollar Index (DXY), which gauges Greenback’s value against six major currencies, slumps to near 10.70, the lowest level seen in two weeks.
The uncertainty over US elections deepened after the Des Moines Register/Mediacom Iowa Poll, which showed current Vice President Kamala Harris is up three points on Trump in the state, Reuters reported. This has appeared a major shift in market expectations, which were pointing to Trump’s victory.
This week, investors should be prepared for more volatility that will come from Federal Reserve (Fed) monetary policy, which will be announced on Thursday. According to the CME FedWatch tool, the central bank is widely anticipated to cut interest rates by 25 basis points (bps) to 4.50%-4.75%. This will be the second interest rate cut by the Fed in a row, however, the pace will be slower as policymakers voted a bigger rate cut of 50 bps in September.
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