Silver Climbs as Treasury Yields and Dollar Retreat
The price of silver is on the rise today, supported by a retreat in the U.S. dollar and Treasury yields. The 10-year Treasury yield dropped to 5.262%, down from a Monday high of 5.349%, while the 30-year yield also fell from its peak. These declines followed a dip in crude oil prices, with Brent crude nearing $99 per barrel and WTI trading close to $88, as concerns over Middle East oil supply eased.
Spot silver (XAG/USD) is trading higher after holding above the key $60.835 level, a long-term 50% midpoint on the daily chart. While the main trend remains down, silver’s recovery back above this level has given traders pause. A move above the main top at $67.55 would shift the trend to upward, while a drop below Friday’s low of $59.69 would signal a resumption of the downtrend.
The minor trend is also down, but a break above $62.09 could turn it upward, indicating stronger buying interest. Silver is currently trading within the lower half of a short-term retracement zone ranging from $61.04 to $62.98. If it climbs above $62.09, the upper limit of this zone at $62.98 and the 50-day moving average at $64.17 could come into play.
If silver fails to hold above $60.835, the next support levels are at $59.69, followed by $56.56 and $54.78. Traders are watching for Wednesday’s Fed minutes, which could provide further direction for the silver market, given its sensitivity to the U.S. Dollar Index and Treasury yields.