Silver Price Struggles as Bond Market and Dollar Weigh on Momentum Buyers
The silver price has been impacted by recent developments in the bond market and the dollar's influence on Treasury yields. This has made it challenging for silver to attract momentum buyers, despite strong industrial demand and ETF buying activity.
According to Bloomberg Finance, physically backed silver ETFs have added around 20.4 million ounces since July 14, lifting total holdings back to around 801.2 million ounces by late August. This trend suggests that investors are rebuilding exposure to silver even while the price struggles to clear resistance.
The next move in the silver market is likely to be decided outside of the silver market itself, with yields and the dollar's strength playing a significant role. If yields continue to climb, ETF demand may not be enough to offset the pressure on silver prices. However, if yields stabilize or decline, the battle around $70 may last longer than expected.
The technical outlook for silver remains constructive, with the broader sequence of higher lows still intact. The 60.90-54.50 area has become a crucial support level, and as long as silver holds above that region, the bigger recovery stays alive. A break below 60.90 would suggest buyers are no longer controlling the recovery.