XAG/USD surged to $66.68m after US Treasury intervention capped long-end bond yields, easing pressure on precious metals.
Silver prices climbed more than 5% on Wednesday, reversing earlier losses as US Treasury yields declined from multi-year highs. The XAG/USD pair reached $66.68m after the US Treasury took steps to limit long-end bond yields, which had hit levels last seen in 2007.
The retreat in yields followed a sharp rise that had weighed on non-yielding assets like silver. Prior to the move, yields had surged amid expectations of prolonged higher US interest rates, pressuring precious metals.
The intervention provided immediate relief, driving silver’s rally as traders reassessed the outlook for monetary policy and safe-haven demand.