XAG/USD trades near $57.50, down 2% for the day, as higher US Treasury yields offset a weaker US Dollar.
Silver (XAG/USD) remains under pressure, trading around $57.50, a 2% decline on Friday, as rising US Treasury yields counterbalance a weaker US Dollar. The metal is poised to end July in negative territory amid persistent macroeconomic headwinds.
The US Dollar Index (DXY) hovers near six-week lows around 100, pressured by suspected Japanese Yen intervention. However, elevated US Treasury yields, driven by inflation concerns tied to higher energy prices, reinforce expectations of prolonged Federal Reserve hawkishness. This dynamic reduces the appeal of non-yielding assets like silver.
Technically, XAG/USD consolidates above $55 support but remains below key moving averages (21-day, 50-day, and 100-day SMAs). The RSI near 44 indicates subdued buying interest, though a positive MACD suggests easing downside momentum.