XAG/USD rises 2.24% to $58.55 as the US Dollar weakens, though higher Treasury yields cap gains amid inflation concerns.
Silver prices climbed 2.24% to $58.55 on Friday, recovering from Thursday’s sharp correction as the US Dollar eased from its recent rally. The modest pullback in the greenback provided temporary support for the non-yielding metal, though gains remained limited by elevated US Treasury yields near multi-week highs.
Investors continued to price in persistent inflation risks, driven by rising oil prices and geopolitical tensions in the Middle East. Attacks on Red Sea vessels and escalating conflicts have stoked fears of prolonged energy supply disruptions, reinforcing expectations of prolonged higher interest rates.
Markets now assign a meaningful probability of further Federal Reserve tightening, according to the CME FedWatch tool. This outlook supports the US Dollar and restrains demand for silver, which offers no yield. Geopolitical risks, including US military actions against Iran, add to the uncertain backdrop.