Silver Prices Stuck Below $50 Amid Dollar Strength and High Yields

Silver prices remain under pressure after losing over 6% last week. The strong US dollar and high Treasury yields are limiting the recovery in silver, making it difficult for the metal to rebound. While the soft US hiring data supports the case for a Fed pause in October, the inflation outlook keeps further rate increases in view.

The improvement in factory activity in both the US and China may support industrial demand, but investors have reduced their bullish silver positions. In order for silver to sustain a recovery, lower real yields and a weaker dollar are needed.