Silver Dropped As A Strong Dollar And Soaring Treasury Yields Spooked Investors

(April 21st, 2022 - Kedia AdvisoryCommodities19)

Silver yesterday settled down by on a strong dollar and soaring Treasury yields spooked investors. U.S. home sales fell more than expected in March as house prices hit a record high despite some improvement in supply and could decline further amid surging mortgage rates. Existing home sales dropped 2.7% to a seasonally adjusted annual rate of 5.77 million units last month, the National Association of Realtors said. The data mostly reflected the closing of contracts signed two to three months ago when the 30-year fixed-rate mortgage was below 4%.

German government bond yields fell today but were still at multi-year highs due to expectations around inflation and higher interest rates. The 10-year Treasury yield shed 7 basis points as investors assessed growth challenges from the Ukraine war and the potential for a peak in inflation. Chicago Fed President Charles Evans said that he favours two half-point rate hikes at upcoming meetings and move rate to 2.25-2.50 percent by the end of the year. Atlanta Fed President Raphael Bostic said that a 75-basis point rate hike is not on the cards and expressed concerns about the impact of faster policy tightening on the U.S. economic recovery. Bostic added that the neutral rate could be between 2 percent and 2.5 percent and the fund's rate could be as low as 1.75 percent.