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Silver slides as Treasury yields bounce and the US dollar rebounds

XAG/USD was down 1.7% to near $58.00, with 10-year Treasury yields up 0.45% to around 4.68% and the dollar index higher.

Reported · Written up by our desk · Precious Metals

Silver prices fell during European trading on Friday, with XAG/USD down 1.7% to near $58.00, as higher US Treasury yields weighed on the metal, FXStreet reports. The decline extended throughout the day alongside a rebound in rates and the US dollar.

FXStreet cited 10-year Treasury yields rising 0.45% to about 4.68%, adding that the move reflects concerns inflationary pressures could stay elevated. It also pointed to the Federal Reserve leaving interest rates unchanged at its Wednesday meeting, while policymakers expressed that inflation remains above the central bank’s 2% target.

The report said the Fed’s communication blackout is set to end, and that TD Securities expects the tone from FOMC members to be critical. TD Securities also warned of significant risk that 10-year Treasuries could break through key technical levels in the coming days, which could drive renewed volatility along the rates curve.

FXStreet added that a sharp US dollar rebound after a three-day losing streak further pressured silver, with the US Dollar Index up 0.35% to around 100.30. It also noted that elevated oil prices tied to fears of constrained global energy supplies have supported Treasury yields, alongside Middle East energy supply concerns related to the Strait of Hormuz.

Latest closeSilver $57.77 ▼1.8%|Dollar index 99.80 ▼0.2%

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