Silver price (XAG/USD) extends its gains for the second successive day, trading around $68.80 per troy ounce during the European hours on Wednesday.
Silver prices advance as market participants evaluate the US Treasury’s decision to double liquidity-support buybacks for longer-dated notes and bonds
This policy shift exerted downward pressure on the US Dollar (USD), driving it to a more than three-month low last week and creating a favorable environment for precious metals. US Treasury rally deepens as yields see biggest two-month drop Strategists at Deutsche Bank highlight the depth of the latest move in US rates, noting that “Treasury yields moved lower across the curve, including the 2yr (-5.9bps), 10yr (-6.8bps) and 30yr (-5.9bps).” They emphasise that “for 10yr Treasury yields this was the biggest decline in two months,” underscoring the strength of the rally and the extent to which benchmark yields have retraced to their lowest levels in almost three weeks. Compounding this bullish momentum is a pullback in crude oil prices, which has helped temper broader inflation anxieties.
Lower energy costs, combined with a weakened dollar, have reinforced investor appetite for Silver as an attractive alternative asset. Silver continues to draw fundamental support from robust industrial consumption. Demand remains particularly strong across high-growth sectors key to the global energy transition, including photovoltaic solar panel manufacturing, electric vehicle production, and the expanding infrastructure required for artificial intelligence data centers.