Silver (XAG) remains under pressure after losing over 6% last week. High Treasury yields and a strong US dollar continue to limit the recovery in silver. The soft US hiring supports the case for the Fed pause in October, but the inflation outlook keeps further rate increases in view. The improvement in factory activity in the US and China may support industrial demand, but investors have reduced their bullish silver positions. In my view, silver needs lower real yields and a weaker dollar to sustain a recovery. This article presents the latest fundamental drivers, the US dollar outlook and the key technical levels that could shape the next move in silver.
Silver Price Forecast: Strong Dollar and High Yields Put $50 in Focus
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Key Points:
- High Treasury yields and a strong US dollar keep silver under pressure.
- An October Fed pause may offer relief, but inflation keeps further rate hikes in view.
- A break below $57-$58 support could push silver towards $45-$50.