Silver Price Analysis: XAG/USD stands neutral following ISM PMIs, labor data looms

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Silver Price Analysis: XAG/USD stands neutral following ISM PMIs, labor data looms
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The XAG/USD pair is trading near the $24.98 level, mostly neutral during Monday's session.

Recent ISM report signaled an uptick in US business activity, with PMIs beating expectations. Markets are discounting a reduced likelihood of a rate cut at the Fed's June meeting. Perceived hawkish bets on the Fed fueled a surge in US Treasury bond yields which weigh on non-yielding metals. Investors await key US labor market indicators to gain further guidance on the economy's health. The XAG/USD pair is trading near the $24.98 level, mostly neutral during Monday's session.

The bond market has also felt the ripples of these developments, with a notable surge in US Treasury bond yields, often seen as the cost of holding non-yielding metals, with the 2-year yield rising to 4.71%, while both the 5-year and the 10-year yields are at 4.33%, all pointing to a sharp uptick and possibly reflecting increased hawkish bets on the Fed.

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