Silver Prices Rebounded as the Market Digested the Interest Rate Hikes

SHANGHAI, May 5 (SMM) - On May 4, the US Fed announced a rate hike of 50 basis points to 0.75%-1.00% and would begin to shrink the balance sheet from June. The market expected the Fed to raise interest rates by 50 basis points. Yesterday, the US dollar index hit a one-week low of 102.45. As the US dollar and the yield fell, the silver prices rebounded. Spot silver at 9 o'clock was quoted at $23.2/oz, and the intraday increase expanded to 1%. Silver TD opened at 4,885 yuan/kg, and then rose to 4,933 yuan/kg. As of May 3, the number of enterprises that resumed production in the Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone has reached 251. Among them, 164 enterprises above the designated size have resumed work, accounting for 52%. It is expected that in mid-May, 100% of enterprises above the designated size will resume work and production. On May 4, the total inventory of silver ETF was 17,943.61 mt, an increase of 26.5 mt compared with yesterday. It is expected that the short-term silver prices will rebound slightly.

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