Near $57.30: Silver Price Forecast as XAG/USD climbs amid falling US bond yields

$57.30 in sight as Silver price surges on lower US Treasury yields.
US bond yields retreat amid concerns over AI growth.
101.75 for the US Dollar Index as falling US bond yields drag it lower.

Silver price (XAG/USD) is up 0.35%. Trading around $57.30 in Tuesday’s European session, the white metal benefits from pressure on United States (USD) Treasury yields following their sharp advance the previous day.

At the time of writing, the US 10-year Treasury yield has slipped 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 provide support for 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% at around 101.75. The index measures the Greenback against six major currencies.

Long-end yields retreat on AI growth worries

Deutsche Bank attributes support for sovereign bonds to mounting concerns, saying “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 move was highlighted by strategists, who noted that “it was the biggest weekly decline for the 10yr yield since August 2025,” and that the “30yr Treasury yield fell -17.5bps (+1.5bps Friday) in its biggest weekly decline since April 2025,”.

Silver Technical Outlook

At $57.34 on the daily chart, XAG/USD retains a bearish short-term bias below its 20-day exponential moving average (EMA) of $59.85. This dynamic resistance continues to cap prices, leaving rallies likely to attract selling. At 38.15, the Relative Strength Index (RSI) remains in bearish territory just above oversold levels, signalling persistent but not yet extreme downside pressure.

For bulls, reclaiming the 20-day EMA at $59.85 is the first hurdle to easing the negative bias, with that level providing immediate resistance. The July 17 low of $54.77 marks key support on the downside.

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

Silver: Frequently Asked Questions

What attracts investors to Silver?

Long used as both a store of value and a medium of exchange, Silver remains a heavily traded precious metal. It is less popular than Gold, but traders may choose it for portfolio diversification, its intrinsic value or its potential to hedge against periods of high inflation. Exposure can come through physical Silver coins or bars, or through instruments such as Exchange Traded Funds that follow its price in international markets.

What drives changes in Silver prices?

A broad set of influences can drive Silver prices. Its safe-haven role means geopolitical instability or concerns about a deep recession can lift prices, though usually less strongly than Gold. Lower interest rates also tend to support Silver because it generates no yield. With the metal priced in dollars (XAG/USD), the performance of the US Dollar (USD) is another key influence: a stronger Dollar generally restrains Silver prices, while a weaker currency is likely to lift them. Investment demand, recycling rates and mine supply also matter, with Silver far more abundant than Gold.

Why does industrial demand matter for Silver prices?

Among metals, Silver has one of the highest levels of electrical conductivity, exceeding both Copper and Gold. This makes it widely used in industry, notably electronics and solar energy. Rising demand can push prices higher, whereas weaker demand tends to depress them. Economic conditions in the US, China and India can also generate price swings. Large industrial sectors in the US and, especially, China consume Silver across various processes, while Indian consumer demand for Silver jewellery is another important influence on prices.

How closely does Silver track Gold prices?

Gold’s price movements often set the direction for Silver. Their similar safe-haven status means Silver usually advances when Gold rises. To assess their relative valuations, investors may use the Gold/Silver ratio, which measures how many ounces of Silver match the value of one ounce of Gold. Some may interpret a high ratio as a sign that Silver is undervalued or Gold overvalued. A low ratio, by contrast, may indicate that Gold is undervalued compared with Silver.