Silver jumps to $65.5 as Treasury doubles buybacks
Silver rises to $65.5 per ounce, the highest in two months, after the US Treasury announced it would double its buyback operations on long-term securities.
Silver prices rose to $65.5 per ounce on Wednesday, the highest in two months, after the US Treasury announced that it would double its buyback operations on long-term securities.
The measure triggered a sharp decline in longer-term Treasury yields, aligned with other efforts to limit pressure the long-end of the curve by the department, such as intervening on the yen market and calling on the Federal Reserve to increase limits on the FIMA facility.
Lower borrowing costs improve the appeal of holding precious metals that bear no interest payments.
In turn, industrial demand for silver also supported bids.
Chinese imports of silver-bearing ores surged 62.5% annually in June to 219,000 tonnes.
The data was in line with an expanding production for solar panels and electricity grids.
Still, lingering risks of a flare-up in energy prices maintained silver relatively close to the seven-month low of $55 per ounce from July 16th.