Silver price remains on range-bound trading after the Fed interest rate decision. The metal is down by 1.02% at 25.93 amid rising US bond yields.
Fed Interest Rate Decision
On Wednesday, the US central bank left interest rates unchanged. By maintaining a dovish tone, it indicated that it would continue with its aggressive monetary policy until the economic recovery is complete. The bank’s Chair, Jerome Powell further noted that the recovery is still uneven.
Following the Fed’s decision, the US bond yields have recouped the previous session’s losses as they soar towards the record-high of 1.70 hit two weeks ago. At the time of writing, the benchmark 10-year US treasury yields were up by 3.86% at 1.67. The surge has offered some support to the US dollar, which is up by 0.11% at 90.69. However, it is still close to the intraday low of 90.42; its lowest level since 26th February. The weakening of the greenback has supported silver price. However, with the rising treasury yields, the precious metal could have its prices decline in the near term.
Silver price is also reacting to the first preliminary US GDP data. According to the Commerce Department, the GDP expanded at an annualized rate of 6.4%. This is higher than the 4.3% in Q4’20. Investors looking to buy silver are now keen on how the China manufacturing PMI numbers will impact the prices, based on the metal’s industrial role. The data, which is scheduled for release on Friday, is expected to come in at 51.7 compared to March’s 51.9.
Silver Price Technical Outlook
On Wednesday, silver price rose from its intraday low of 25.84 to 26.48 earlier on Thursday.
