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Silver hits two-month high as Treasury buybacks lift dollar demand expectations

XAG/USD was last around $67.1, with 10-year Treasury yields near Wednesday’s 4.64% low and the US Dollar Index near a seven-week low at 98.77.

Reported · Written up by our desk · Major Pairs

Silver prices rose to a fresh two-month high in Asian trading, with XAG/USD touching $67.33, as falling long-dated US Treasury yields weighed on the dollar and supported demand for non-yielding assets.

FXStreet links the move to a US Treasury plan announced Wednesday to double buybacks for long-dated securities, a change expected to increase overall dollar cash flow into the economy. The outlet notes that as of writing, 10-year yields traded near Wednesday’s low of 4.64%, after falling more than 1.5% on Wednesday, while 30-year yields were down almost 2% to around 5.18%.

The report also points to technical and policy inputs. The US Dollar Index (DXY) was near a seven-week low at 98.77, and XAG/USD held above the 20-period exponential moving average around $63.20, with the relative strength index at 61.48 staying in positive territory without reaching overbought conditions.

On the outlook, FXStreet says immediate support lies near the recent pivot around $67.10, followed by firmer support near the 20-period EMA around $63.20. It adds that upside levels to watch include $70.00 and the June 16 high at $71.19, while FOMC July minutes suggested some officials would favor rate hikes if inflation remains higher.

Latest closeSilver $63.77 ▼0.9%|Dollar index 101.29 ▲0.2%

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