XAG/USD drops near seven-month lows amid rising US yields and expectations of a September Fed rate increase.
Silver prices extended losses Tuesday, with XAG/USD trading at $62.46 as rising Treasury yields pressured precious metals. The decline follows hawkish Fed commentary and stronger US economic data, lifting rate hike probabilities to 70% for September.
The 10-year Treasury yield briefly topped 4.5%, while the 2-year yield hit a 16-month high of 4.23%. Silver’s technical outlook remains weak, with support at $61.00 and $59.00, while resistance sits near $63. The RSI nears oversold levels but shows no clear reversal signal.
Markets now await further Fed signals, with metals vulnerable to sustained yield strength and tightening expectations.