Silver (XAG/USD) experienced a notable decline on Wednesday, falling below $58.00 after failing to consolidate above the $60.00 mark the previous day. The drop brings the metal closer to its year-to-date lows near $55.60, which were last seen in June [1]. The primary driver behind this bearish move is the surge in US Treasury yields, with the benchmark 10-year note rising nine basis points to approximately 4.7%. This increase is attributed to month- and quarter-end portfolio adjustments, and it has strengthened the US Dollar, further weighing on precious metals [1].
Recent US macroeconomic data has reinforced the narrative of US economic strength. Job Openings unexpectedly rose in May to their highest levels in two years, signaling a robust recovery in the US labor market. This has led investors to ramp up bets on further Federal Reserve tightening, with attention focused on Fed Chairman Kevin Warsh's upcoming speech at a central bankers’ meeting later in the day [1].
From a technical perspective, XAG/USD is trading at $57.54, maintaining a broader bearish bias. Although momentum indicators such as the four-hour Relative Strength Index (14) and MACD suggest a possible corrective bounce, the market remains hesitant and upside attempts are capped between the 23.6% Fibonacci retracement at $59.45 and the $60.00 psychological area. Bears are currently contained above Tuesday's low of $56.60, but a break below the seven-month low at $55.71 could bring October and mid-November 2025 highs at $54.86 and $54.39 into focus [1].
Market participants are closely watching for further signals from the Federal Reserve and US economic data, as these factors continue to influence silver prices. The technical outlook suggests limited upside potential in the near term, with resistance and support levels clearly defined [1].
CONCLUSION
Silver's decline below $58 reflects the impact of rising US yields and strong US economic data, which have bolstered the US Dollar and pressured precious metals. Technical indicators point to continued bearish sentiment, with key support and resistance levels in focus. Investors are awaiting further guidance from the Federal Reserve, which could shape silver's next move.