Silver Retreats from Multi-Year High
Silver's price hovered around $48.10 per ounce after retreating from its recent multi-year peak observed on October 6th. This decline resulted from profit-taking activities, as rising yields increased the opportunity cost of holding the metal. The upward movement in the Treasury curve made silver, a non-yielding commodity, less attractive to investors sensitive to such yield changes. While physical demand from the solar and electronics sectors remains robust, it is insufficient to counterbalance the financial adjustments. Additionally, slight recoveries in mine output and recycling have helped alleviate the immediate tight supply in deliverable markets. This pullback followed a rally driven by safe-haven investments during the US government shutdown, which disrupted key macroeconomic releases and heightened expectations for Federal Reserve easing, initially drawing substantial financial investments into precious metals.
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