XAG/USD drops 1.7% amid rising US bond yields and Fed concerns over persistent inflation above the 2% target.
Silver (XAG/USD) fell 1.7% to near $58.00 in European trading Friday, extending losses as US Treasury yields rebounded. The 10-year yield rose 0.45% to 4.68%, pressuring non-yielding assets like silver.
The Federal Reserve held rates at 3.50%-3.75% Wednesday but signaled ongoing inflation concerns, keeping markets focused on hawkish rhetoric. TD Securities warned of potential volatility, noting risks of Treasury yields breaking key technical levels.
Elevated oil prices and Middle East supply fears further supported yields, adding to silver’s downward pressure.