Silver Price Forecast: XAG/USD rises to near $57.30 amid drop in US bond yields
- Silver price jumps to near $57.30 as US Treasury Yields fall.
- AI growth concerns weigh on US bond yields.
- Lower US bond yields push the US Dollar Index down to 101.75.
Silver price (XAG/USD) trades 0.35% higher at around $57.30 during the European trading session on Tuesday. The white metal rises as United States (USD) Treasury Yields come under pressure after a sharp upside move the previous day.
As of writing, 10-year US Treasury Yields are down 0.5% to near 5.12%. Yields on US-backed securities gained almost 1.2% to near 5.14%. Theoretically, a drop in US bond yields comes in as a relief of non-yielding assets, such as Silver.
Lower US bond yields have also weighed on the US Dollar (USD). In European trade, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.22% lower to near 101.75.
AI growth concerns hit long-end yields
According to Deutsche Bank, mounting “Artificial Intelligence (AI)-related growth concerns helped to drive a decent rally for sovereign bonds,” with the US 10-year Treasury yield falling “down -16.5bps last week (+1.5bps Friday) to 5.07%.” Strategists highlight that “it was the biggest weekly decline for the 10yr yield since August 2025,” while the “30yr Treasury yield fell -17.5bps (+1.5bps Friday) in its biggest weekly decline since April 2025,” underscoring the intensity of the move at the long end of the curve.
Silver Technical Analysis
In the daily chart, XAG/USD trades at $57.34, keeping a bearish near-term tone as it remains capped beneath the 20-day exponential moving average (EMA) at $59.85. Price action stays below this key dynamic barrier, suggesting rallies are likely to face selling interest, while the Relative Strength Index (RSI) at 38.15 holds in bearish territory just above oversold, hinting that downside pressure persists but is not yet extreme.
On the topside, the 20-day EMA at $59.85 is the immediate resistance level that bulls need to reclaim to alleviate the current negative bias. On the downside, the July 17 low at $54.77 is the key support level.
(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.
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