XAGAUD Prices Slide as Yields Rise and Industrial Demand Weakens

Silver/AUD (XAGAUD) prices have been declining since July 28, dropping by 2.04% to $81.802 at 01:30 ET.

The main reason behind this decline is the recent hawkish signaling from the U.S. Federal Reserve and resilient inflation data, which has pushed real yields higher.

As a non-yielding asset, silver's price is affected by the increase in opportunity cost, leading to institutional outflows and technical selling.

The shift in the yield curve has also overshadowed silver's traditional role as an inflation hedge, particularly with the market anticipating a prolonged period of restrictive monetary policy.