XAG/USD climbs above $80.00 on reduced US rate hike expectations and lower Treasury yields amid oil price pullback.
Silver (XAG/USD) extended gains Thursday, breaking above $80.00 as lower US Treasury yields and a retreat in oil prices dampened expectations for further Federal Reserve rate hikes. The rally reflects broader strength in precious metals amid shifting monetary policy bets.
The move follows a decline in benchmark Treasury yields, which reduced the opportunity cost of holding non-yielding assets like silver. Oil prices also pulled back, easing inflation concerns and supporting risk appetite. Markets now await further signals on Fed policy amid mixed economic data.
Precious metals have benefited from the softer US dollar and receding rate hike fears, with silver outperforming gold in recent sessions. The trend may persist if yields remain subdued and inflation expectations stabilize.