Silver Rallies on US Debt Buybacks and Slumping Dollar
Silver (XAG/USD) has been gaining momentum in recent times, pushing against the significant $70 resistance level. The US Treasury's decision to scale up long-term debt buybacks has led to a sharp decline in bond yields and the value of the US dollar.
This development has triggered a renewed focus on safe-haven assets like gold and silver, as investors seek refuge from market volatility. Persistent industrial demand for silver, driven by green technology, electronics, and solar applications, continues to support prices despite flat mine supply.
The Relative Strength Index (RSI) is pushing upward toward overbought territory, indicating a bullish trend in the short term. However, sustainability heavily relies on broader bond market movements and currency fluctuations.