Silver Eases to 6-Week Low
Silver prices were around the $63 per ounce mark on Wednesday, testing their lowest in over one month, after the Federal Reserve delivered a 25bps rate hike. The decision by the US central bank was widely expected following data that reflected high consumer and producer prices, in addition to robust economic growth and low unemployment. Additionally, most FOMC members projected another rate hike this year. Shorter-maturity yields rose to multi-year highs, pressuring bullion prices as markets favor securities that bear yield. Meanwhile, the Bank of Japan is also due to hike its rates this week. In turn, metals with exposure to datacenter development came under pressure as AI model executives voiced concerns over the safety of more intelligent models, risking the speculative demand for compute infrastructure.
Silver prices were around the $63 per ounce mark on Wednesday, testing their lowest in over one month, after the Federal Reserve delivered a 25bps rate hike. The decision by the US central bank was widely expected following data that reflected high consumer and producer prices, in addition to robust economic growth and low unemployment. Additionally, most FOMC members projected another rate hike this year. Shorter-maturity yields rose to multi-year highs, pressuring bullion prices as markets favor securities that bear yield.
Meanwhile, the Bank of Japan is also due to hike its rates this week. In turn, metals with exposure to datacenter development came under pressure as AI model executives voiced concerns over the safety of more intelligent models, risking the speculative demand for compute infrastructure.