Silver Reclaims $65 as Dollar Strength Continues Amid Fed Hawks

Silver prices surged 1.85% to near $65.00 during Friday's European trading session, while gold struggled below $4,300.

The DXY Dollar Index, which measures the greenback's value against six major currencies, traded 0.2% to near 101.05, with 10-year US Treasury Yields correcting from a 19-year high of 5.22% to near 5.15%.

A corrective move in yields on interest-bearing assets typically results in an improvement in the appeal of non-yielding assets like silver. Additionally, a lower dollar makes XAGUSD a favorable risk-reward bet for investors.

However, strategists at Brown Brothers Harriman argue that the outlook for the dollar and US Treasury yields remains bullish amid the Federal Reserve's higher-for-longer interest rates narrative. Officials have warned of high inflation and expressed economic resilience.