Silver Prices Plummet as Treasury Yields Rise

Silver prices plummeted by 2.73% to around $65.43 per ounce, a decline of roughly $1.88 on the session. The move extends the weakness seen over the past several sessions and puts silver back at an important area around $65.

The immediate explanation appears to be coming from outside the precious-metals market. Analyst Curious pointed to a big move higher in U.S. Treasury yields, elevated oil prices, and renewed concerns that inflation could keep the Federal Reserve restrictive for longer.

Rising Treasury yields are putting pressure on both gold and silver. Gold is down approximately 1.3% today and has fallen below $4,400 per ounce. The chain of events looks like this: higher oil → renewed inflation concerns → higher-for-longer rate expectations → rising Treasury yields → pressure on gold and silver.

The bond market is a significant factor in the current selloff. Gold and silver don't pay interest, making them less attractive when Treasury yields rise. The 2-year U.S. Treasury yield has climbed back toward 4.36%, while the 10-year yield is approaching 4.79%.

For now, the silver selloff looks primarily driven by a rates and inflation repricing rather than a sudden collapse in the longer-term precious-metals narrative. $65 is now the level to watch for silver specifically. Holding it would give bulls an opportunity to stabilize the market again. Losing it decisively would make today's 2.73% decline more concerning and could open the door to a deeper correction.