Silver's Pullback Post-CPI and Fed Speak
The silver action today, with $SLV down over 3% and hitting a low of 50.29, feels pretty reflective of the current macro crosscurrents. CPI came in hotter than some anticipated, reinforcing the 'higher for longer' narrative, and we've had a few Fed governors this week echo that sentiment regarding rate cuts. It's not exactly a tailwind for non-yielding assets, is it?
I'm watching to see if this pullback in precious metals holds, or if it's just a quick shakeout before the next leg up. The longer-term inflation argument for silver still seems compelling to me, but the short-term pressure from rates is undeniable. For now, I'm just observing price action around this 50-handle on $SLV. No rush to do anything in this choppiness. Need to see some conviction before considering any adjustments to my watchlist.
Agreed, the reaction in precious metals isn't surprising given the CPI print and subsequent Fed commentary. It seems the market is recalibrating expectations for rate cuts, and non-yielding assets tend to bear the brunt of that. The key will be if this trend persists or if we see a bounce after initial absorption.