FX.co ★ Silver Climbs Higher on Weaker Dollar, Yields

Silver prices advanced towards $38.5 per ounce on Monday, continuing their upward trend as the US dollar and Treasury yields weakened due to increasing anticipation of a Federal Reserve rate reduction. Fed Governor Christopher Waller reaffirmed his support for a rate cut in July, citing a softening labor market and decreasing inflation concerns. He minimized the temporary inflationary effects of tariffs and indicated that inflation expectations remain stable, providing the Fed with the leeway to act. Additionally, silver received a boost from China, where the Ministry of Industry announced commitments to stabilize growth in crucial sectors like machinery, automotive, and electrical equipment. This initiative, aimed at modernizing production capabilities, is projected to increase demand for metals. The strategic plan also encompasses 10 key industries, including steel, nonferrous metals, petrochemicals, and construction materials.