Silver Climbs as Yields and Dollar Retreat

Silver prices rose on Tuesday, benefiting from a retreat in the U.S. Dollar Index and long-term Treasury yields. The 10-year Treasury yield dropped to 5.262%, down from a peak of 5.349% on Monday, the highest since 2002. The 30-year yield also declined to 5.632%, while the two-year yield moved lower as well. The decline in yields followed a drop in crude oil prices, with Brent falling toward $99 a barrel and WTI trading near $88.

Spot silver (XAG/USD) is trading higher after holding above the long-term 50% level at $60.835, a key decision point on the daily chart. The main trend remains down, but a trade through the main top at $67.55 could reverse it. Conversely, a move below Friday’s low at $59.69 would signal a resumption of the downtrend. The minor trend is also down, though a trade through the minor top at $62.09 would indicate a shift in buyer sentiment.

The first upside target for silver is the short-term retracement zone between $61.04 and $62.98. If silver moves above $62.09, the next resistance levels are $62.98 and the 50-day moving average at $64.17. On the downside, failure to hold above $60.835 could expose $59.69, followed by support at $56.56 and $54.78.

Traders are now looking ahead to Wednesday’s release of the Federal Reserve minutes, which could provide further direction for silver. While the metal rebounded to $61.71 on Tuesday, the overall bias remains to the downside until it breaks above key resistance levels. The move back above the midpoint has made shorts cautious, but the main trend has not yet reversed.