Silver Leads Benchmark Moves While the Yen Weakens

The most unusual market move on Friday, September 18 was Silver, roughly twice the size of its usual day.

Among precious metals, Silver +3.5% outpaced the broader market, while Gold +1.6% also advanced. Both precious metals found support as retreating oil prices eased persistent inflation concerns, while lower Treasury yields and position adjustments following the latest Federal Reserve meeting provided additional lift.

Foreign exchange markets reflected shifting interest rate differentials between major economies. Trading showed the yen -0.6% against the dollar as the Japanese currency weakened against the dollar. The move came after the Bank of Japan lifted its benchmark policy rate to 1.25% in a 7-2 vote, where internal opposition and cautious guidance from policymakers curbed expectations for rapid subsequent rate hikes. That contrasted with the United States, where the Federal Reserve had raised its benchmark rate by a quarter point earlier in the week to a 3.75% to 4.00% target range.

Major European currencies strengthened against the dollar, with the euro +0.1% against the dollar and the pound +0.3% against the dollar.

In digital assets, which trade on speculative demand without physical utility or underlying corporate earnings, the session closed with Bitcoin +5.9% and Ethereum +6.8%.

Round-the-clock trading has continued since Friday's close, registering silver +1.0% and the yen against the dollar -0.2% as of 10:40 am New York.

Scheduled economic events in the coming week include United States reports on new home sales, durable goods orders, and several appearances by Federal Reserve officials. In international central banking, monetary policy announcements are scheduled on Thursday from the Swiss National Bank, Norges Bank, and Sveriges Riksbank.