Silver Soars to New High on US Debt Concerns

Silver has reached an intraday high of $69.94 on Friday, just shy of the $70-per-ounce threshold, as investors react to the US Treasury's announcement that it will at least double its buybacks of long-dated government bonds.

The move is seen as a sign that concerns over US debt sustainability are not fading, and precious metals investors are taking notice. The metal has climbed roughly 15 percent over the past 30 days, with the last week alone accounting for a 6.5 percent advance.

Analysts point to persistent tightness in the physical silver market as a key driver of the rally, with supply constraints providing a floor beneath the metal's price. The Treasury's intervention and supply-side constraints have created a dual engine for the rally, which could determine whether silver can sustain a move above the psychologically significant $70 level.

The coming week brings fresh catalysts that could shape the next leg of the rally, including US PCE price data and the Jackson Hole Economic Policy Symposium. Whether the Treasury's bond-buyback program and the structural supply deficit prove sufficient to cement a breakout beyond $70 remains an open question.