Silver Price Analysis: XAG/USD clears losses gains after Powell's words

NEW YORK (November 1) In Wednesday's session, the XAG/USD faced selling pressure, but Chair Powell's dovish words made the grey metal reverse its course towards $22.90, and at the time of writing, it is up by 0.20% on the day.

After the Federal Reserve (Fed) announced it would hold rates at the 5.25-5.50% range, Chair Powell sounded somewhat hawkish at the beginning of his presser that he would take into account the tighter financial conditions and the cumulative effects of the monetary policy for the next December decision. In addition, he welcomed the decelerating inflation and job creation figures, but he pointed out he still needs more data points to feel confident that the bank's job is done. That being said, he then commented that the Fed had come very far with this rate-hike cycle and that is close to its end, which triggered a wave of risk-on flows benefiting the Silver's price.

In addition, US Treasury yields are sharply falling, with the 2-year rate falling below 5%, down by more than 2%, while the 5 and 10-year rates declined to 4.67% and 4.75%.

Focus now shifts to Friday's Nonfarm Payrolls report and next week's inflation readings from October for investors to continue placing their bets on the next decisions.

FXStreet