Commodities
Home›Commodities›Precious Metals›Silver jumps as Treasury liquidity buyback plan weighs…
Silver jumps as Treasury liquidity buyback plan weighs on the dollar
Silver was last around $65.80, boosted by a Treasury plan to expand longer-dated coupon liquidity support buybacks effective September 9.
Silver prices moved sharply higher on Wednesday, with XAG/USD changing hands near $65.80 as part of a broader rally in precious metals. Gold also rose, with XAU/USD trading toward $4,500, according to FXStreet.
FXStreet linked the move to a US Treasury decision to increase, by at least double, the size of its liquidity support buyback operations for longer-dated coupon securities starting September 9. The plan is intended to help rein in recent gains in long-end yields, a factor traders said supported the metals backdrop.
The session also featured the release of the July Federal Open Market Committee minutes. FXStreet said the minutes indicated inflation remains elevated, with policymakers viewing the labor market as stable and the economy expanding, and that three officials, Lorie Logan, Beth Hammack, and Neel Kashkari, voted for a rate hike, though FXStreet noted the minutes did not materially change market sentiment.
In pricing for the September meeting, traders had odds of only a 34% chance of a hike, down from about 60% three weeks earlier, and FXStreet said that softer rate outlook helped keep conditions favorable for metals. FXStreet added that XAG/USD held above key moving averages on its 4-hour chart, with near-term support around $65.29 and further demand zones near $63.83 and $63.54.
Latest closeGold $4,432.00 ▲1.6%|Silver $64.83 ▼0.1%