Silver Price Forecast: XAG/USD ticks lower to near $60.60 as US bond yields bounce back
- Silver price edges lower to near 60.60 as US Treasury Yields regain ground.
- US Treasury Yields recovers above 5.3% as oil prices bounce back.
- Danske Bank sees 10Y and 30Y US Treasury yields surging to 6%.
Silver price (XAG/USD) is slightly down to near $60.60 during the European trading session on Wednesday. The white metal faces marginal selling pressure as United States (US) Treasury Yields regain ground after a corrective move the previous day.
10-year US Treasury Yields are up 0.4% at 5.31%, at press time, close to their two-decade high of 5.35% posted last week.
Higher yields on US-backed securities diminish the appeal of non-yielding assets, such as Silver.
A recovery move in US bond yields has also lend support to the US Dollar. As of writing, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.33% higher at around 102.18.
Technically, a higher US Dollar makes the Silver price an unfavorable risk-reward bet for investors.
It seems that the return of buying interest in oil prices has staged a recovery in United States (US) Treasury Yields. The WTI Oil price has shown some signs of reversal from its monthly low of $86.32 posted on Tuesday. Energy products attract bids amid fears that a storm forming in the Gulf of Mexico would become the first Atlantic hurricane of 2026 within two days and would likely hit oil and gas producing facilities, Reuters report.
Analysts at Danske Bank have highlighted that US bond yields are in a longer-term uptrend not only supply of Treasuries but also from the hyperscalers. Against this setting, the bank cautions that “we do see the risk of 10Y and 30Y Treasuries hitting 6% as investors demand a higher premium for the long end,” underscoring concerns that term premia may need to rise further to clear upcoming issuance.
Silver Technical Analysis
In the daily chart, XAG/USD trades at $60.60, keeping a bearish near-term tone as it holds below the 20-day exponential moving average (EMA) at $62.71. The downside bias is reinforced by the Relative Strength Index (RSI) near 40, which suggests subdued bullish momentum and leaves the metal vulnerable to further weakness while it remains capped beneath the nearby EMA resistance.
On the topside, immediate resistance is located at the 20-day EMA at $62.71, and a sustained break above this level would be needed to ease the current bearish pressure and open the door for a more constructive recovery. On the downside, the October 2 low near 59.70 is the key support zone.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.