XAG/USD falls to $68.40 despite US Treasury’s $1 trillion bond buyback plan aimed at boosting liquidity and yields.
Silver prices (XAG/USD) declined for a second day, trading near $68.40 per ounce in European trading. The drop comes despite the US Treasury’s announcement to double buybacks for longer-dated bonds, a move expected to inject up to $1 trillion into markets using the Treasury General Account.
Market participants view the intervention as a temporary fix, with concerns lingering over US debt levels, inflation, and potential dollar weakness. Industrial demand for silver remains strong, driven by green energy, solar panels, and AI infrastructure growth.
Analysts suggest silver may follow gold’s upward trend, supported by safe-haven demand amid escalating US sanctions on Iran’s oil revenues.