Silver (XAG/USD) prices edged lower to approximately $60.60 during the European trading session on Wednesday, facing marginal selling pressure as US Treasury yields rebounded after a prior corrective move [1]. The 10-year US Treasury yield rose 0.4% to 5.31%, nearing its two-decade high of 5.35% recorded last week [1]. Higher yields on US-backed securities reduce the attractiveness of non-yielding assets like silver, contributing to the metal's decline [1].
The recovery in US bond yields also supported the US Dollar, with the Dollar Index (DXY) trading 0.33% higher at around 102.18 at the time of reporting [1]. A stronger dollar typically makes silver a less favorable investment, further pressuring prices [1]. The resurgence in oil prices, particularly WTI crude reversing from its monthly low of $86.32, has been linked to renewed buying interest in US Treasury yields. This move is partly driven by concerns over a developing storm in the Gulf of Mexico, which could become the first Atlantic hurricane of 2026 and potentially impact oil and gas facilities, according to Reuters [1].
Analysts at Danske Bank noted that US bond yields are in a longer-term uptrend, influenced by both Treasury supply and hyperscaler activity. The bank cautioned about the risk of 10-year and 30-year Treasury yields reaching 6% as investors demand higher premiums for longer maturities, highlighting concerns that term premia may need to rise further to clear upcoming issuance [1].
From a technical perspective, XAG/USD remains bearish in the near term, trading below the 20-day exponential moving average (EMA) at $62.71. The Relative Strength Index (RSI) is near 40, indicating subdued bullish momentum and vulnerability to further weakness. Immediate resistance is at the 20-day EMA ($62.71), while key support lies at the October 2 low near $59.70 [1].
CONCLUSION
Silver prices are under pressure as US Treasury yields approach multi-decade highs and the US Dollar strengthens, diminishing the appeal of non-yielding assets. Analysts warn of further upside risk in yields, which could continue to weigh on silver. Technical indicators suggest a bearish outlook unless silver breaks above key resistance levels.