Silver fell 5.4% to $54.84 an ounce Thursday, Oct. 22, as Reuters linked rising oil to inflation worries and FXStreet attributed the metal’s decline to higher energy costs and dollar strength.
Reuters reported spot silver at $54.84 per troy ounce at 2:05 p.m. ET (18:05 UTC). FXStreet later put XAG/USD at $54.85 at 2:48 p.m. ET (18:48 UTC) and reported a session low of $54.53.
The U.S. Department of the Treasury’s daily par yield curve listed the 10-year rate at 4.96% for Oct. 22. The figure for Oct. 21 was 5.13%. An Associated Press report separately put the Thursday yield at 4.97%, down from 5.13% late Wednesday, and said investors sought safety in Treasuries as technology shares sold off.
FXStreet noted that silver pays no interest and tends to benefit when rates fall. It nevertheless attributed the metal’s decline to higher energy costs and a stronger dollar. Reuters separately reported that the U.S. dollar index rose 0.14% to 101.82 on Oct. 22.
Reuters tied a roughly 3% oil gain, which took prices to a five-month peak, to concerns that Houthi attacks in Saudi Arabia could disrupt supplies. The outlet said the energy move revived inflation worries and expectations that interest rates could stay elevated for longer. David Meger, director of metals trading at High Ridge Futures, told Reuters that overnight energy gains had increased concerns about inflation.
FXStreet’s technical analysis listed $54.50, $50, $48.64 and $45.56 as chart levels. It also cited $58.02 and $60.00 above $55. These are markers in the outlet’s analysis, not established future prices.
The latest decline followed an earlier drop covered in EconoTimes’ report on silver and renewed oil-driven rate concerns.
The Federal Reserve’s two-day policy meeting is scheduled for Tuesday and Wednesday, Oct. 27-28. The Bureau of Economic Analysis (BEA) is due to release September Personal Income and Outlays data, including the PCE price index, Thursday, Oct. 29.
