Silver Price Faces Crucial Test Near $64 as Treasury Yields Rise

Silver's price is facing a critical test as it hovers near $64 per ounce, influenced by rising U.S. Treasury yields and changing expectations around Federal Reserve monetary policy.

The current downturn does not necessarily reflect a fundamental decline in silver's outlook, but rather a temporary repricing of interest-rate and liquidity risks.

According to the source, the most significant short-term headwind for XAG/USD is the hawkish tone of Federal Reserve Chair Kevin Warsh, who emphasized concerns over persistent inflation and the possibility of higher interest rates if price pressures remain elevated.

The 10-year U.S. Treasury yield has climbed to around 4.81%, its highest level since November 2023, reflecting heightened concerns over inflation and future monetary policy paths.