Silver Surges as Oil Prices Correct and Yields Fall

The silver price has surged to near $66.80 as investors take comfort from a correction in oil prices and US Treasury yields.

A combination of hawkish Federal Reserve pricing, increased inflation-fighting credibility, and concerns about higher rates impacting growth is expected to keep 10-year yields contained, according to TD Securities.

However, the sharp increase in hawkish Fed bets has pushed up the US Dollar, limiting the upside potential for silver. The US Dollar Index (DXY) trades close to its over six-week high of 100.37.

In the daily chart, XAG/USD holds a bullish near-term bias as price remains above the 20-day Exponential Moving Average (EMA) at $65.15. Immediate support is seen at this level, while on the upside, silver needs a decisive break above the September 9 high of $68.33 to revisit the three-month high at $71.12.