Silver price (XAG/USD) falls to near $29.60 in a thin trading volume session following holidays on Christmas and Boxing Day on Friday. The white metal is under pressure even though tensions in the Middle East region between Israel and Iran have escalated.
On Thursday, Israel launched missiles at the Iran-backed Houthis military and bombed Yemini airport. After the air assault, Israeli Prime Minister Benjamin Netanyahu said in an interview with an Israeli TV station of the Houthis, "We are just getting started with them". Israel retaliated to last week's air assault by Iran.
Historically, heightened geopolitical tensions improve the demand for safe-haven assets, such as Silver.
Meanwhile, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, oscillates in a tight range above the key support of 108.00. 10-year US Treasury yields rise to near 4.61%. Higher yields on interest-bearing assets elevate the opportunity cost of non-yielding assets, making them an expensive bet for investors.
US bond yields remain firm on expectations that the Federal Reserve (Fed) will deliver fewer interest rate cuts in 2025. The Fed is expected to slow down the policy-easing cycle amid confidence in the United States (US) economic outlook.(Cay) Newsmaker23
Source: Fxstreet
