Concerns over resurgent inflation are simultaneously unsettling the bond market and the industrial metals sector. On Friday, as U.S. Treasury yields climbed sharply, silver and related assets faced selling pressure. Shares of silver producers such as Silvercorp Metals, Teck Resources, and Endeavour Silver broadly declined, while exchange-traded funds like the iShares Silver Trust and the ProShares Ultra Silver, which offers double exposure to silver, also saw significant drops. The core market anxiety stems from the ongoing Middle East conflict driving oil prices higher. Rising energy costs are expected to transmit inflationary pressures across the broader economy, potentially compelling the Federal Reserve to keep interest rates elevated for a longer period. Higher interest rates directly weigh on precious metals, which do not yield interest, and could also dampen industrial demand, thereby delivering a dual blow to base metal prices.
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