Gold, Silver Slip as Bond Yields Climb Ahead of Fed Meeting

Core Viewpoint - Silver prices are near an all-time high, supported by expectations of an interest rate cut by the Federal Reserve, while gold has also seen a slight increase [1]. Group 1: Market Performance - Silver steadied after a decline of up to 1.4% in Asian trading, remaining just under the record price of $59.3336 per ounce [2]. - Last week marked the best inflow period for silver-backed exchange-traded funds since July, with nearly 590 tons added, indicating strong investor confidence in the rally's continuation [2]. - Silver has more than doubled in value this year, outperforming gold's 60% increase, driven by expectations of a monetary policy easing by the Fed [4]. Group 2: Market Dynamics - The silver market is experiencing the effects of a historic short squeeze, with one-month lease rates around 6%, despite significant metal inflows into major trading hubs [5]. - Tightening inventories in London and China are providing support for silver prices, alongside strong industrial demand and safe-haven flows [7]. - The market is expected to face greater volatility as it reacts to the Fed's policy decision and ongoing supply tightness [6].