FX.co ★ Silver Mounts Further Losses

Silver prices fell about 3% on Thursday, dropping below $69.50 per ounce, as a stronger US dollar and rising Treasury yields weighed on demand for non-yielding bullion. The dollar index rose for a third straight session, while the 10-year Treasury yield hovered near eight-month highs, as investors reacted to the end of a five-day pause in US strikes on Iranian energy infrastructure.

Although the Trump administration reportedly sent a 15-point peace proposal to Tehran via Pakistan, Iran has shown little willingness to compromise, while the US has deployed additional troops to the region. These ongoing geopolitical tensions have kept energy prices elevated, reinforcing inflation concerns and bolstering expectations that the Federal Reserve will keep interest rates on hold.

On the data front, initial jobless claims came in line with expectations at 210,000, while continuing claims fell to their lowest level in nearly two years, pointing to continued strength in the labor market.