Silver Price Forecast: Why Has XAG/USD Climbed to Near $57.30 as US Bond Yields Fall?

Silver price rallies towards $57.30, supported by declining US Treasury yields.
US bond yields face pressure from AI-related growth worries.
The US Dollar Index slips to 101.75 as US bond yields ease.

Silver price (XAG/USD) gains support from softer United States (USD) Treasury yields, trading 0.35% higher near $57.30 in Tuesday’s European session. The white metal advances as yields retreat following a sharp rise the day before.

At the time of writing, the 10-year US Treasury yield has declined 0.5% to around 5.12%. Yields on US-backed securities had climbed almost 1.2% to around 5.14%. In theory, falling US bond yields offer support to non-yielding assets such as Silver.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

The US Dollar (USD) has also come under pressure from the decline in US bond yields. During European trading, the US Dollar Index (DXY) is down 0.22% near 101.75. The index measures the Greenback against a basket of six major currencies.

How are AI growth worries weighing on long-end yields?

Deutsche Bank attributes the sovereign bond rally to growing concerns over AI and growth, noting that mounting “Artificial Intelligence (AI)-related growth concerns helped to drive a decent rally for sovereign bonds,” as the US 10-year Treasury yield moved “down -16.5bps last week (+1.5bps Friday) to 5.07%.” The scale of the long-end rally is evident in the strategists’ observation 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,” highlighting the strength of the move at that end of the curve.

Silver Technical Analysis: Can Bulls Overcome Resistance?

With XAG/USD trading at $57.34 on the daily chart, the near-term outlook remains bearish as the price stays beneath the 20-day exponential moving average (EMA) of $59.85. Trading below this important dynamic resistance suggests that any rallies are likely to attract sellers. Meanwhile, the Relative Strength Index (RSI) stands at 38.15, in bearish territory just above oversold levels, indicating that downward pressure remains in place but has not yet reached an extreme.

To ease the prevailing negative bias, bulls first need to recover the 20-day EMA at $59.85, which acts as immediate resistance. The key support on the downside lies at $54.77, the low recorded on July 17.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Common Questions About Silver

What attracts investors to Silver?

Widely traded by investors, Silver is a precious metal that has long served both as a store of value and as a medium of exchange. Gold remains more popular, but traders may choose Silver for its intrinsic value, to diversify their investment portfolios or as a potential hedge when inflation is high. Exposure can be obtained by purchasing physical Silver as coins or bars, or by trading instruments such as Exchange Traded Funds that follow its price in international markets.

What drives changes in Silver prices?

A broad range of influences can move Silver prices. Its safe-haven appeal can lift prices during geopolitical unrest or fears of a severe recession, though this effect is generally weaker than for Gold. Lower interest rates tend to support Silver because it pays no yield. Since the metal is quoted in US Dollars (USD) as XAG/USD, movements in the currency also matter: Dollar strength tends to restrain Silver prices, while a weaker Dollar is likely to lift them. Investment demand, the supply from mining and recycling rates are further influences, with Silver far more abundant than Gold.

What role does industrial demand play in Silver pricing?

Among metals, Silver has one of the highest levels of electrical conductivity, exceeding those of Copper and Gold, which makes it widely used in industries such as electronics and solar energy. Rising demand can lift prices, whereas a drop in demand tends to pull them lower. Economic developments in the US, China and India can also drive price fluctuations. Large industrial sectors in the US and especially China consume Silver in a variety of processes, while Indian consumer demand for Silver jewellery is another important factor in determining prices.

How closely does Silver track movements in Gold?

Given their similar safe-haven status, Silver generally tracks Gold and typically rises when Gold prices advance. Investors may use the Gold/Silver ratio to assess the relative valuations of the two metals. This ratio measures how many ounces of Silver are needed to match the value of one ounce of Gold. A high reading may be viewed by some investors as a sign that Silver is undervalued or Gold is overvalued. A low reading, by contrast, may indicate that Gold is undervalued compared with Silver.