XAG/USD rebounds modestly after a 4.3% drop Thursday, driven by Middle East tensions and rising US Treasury yields.
Silver (XAG/USD) climbed back above $58.00 in early European trading Friday, paring losses as the US Dollar eased from recent highs. The metal had slumped 4.3% Thursday amid risk aversion tied to escalating Middle East conflict and surging US Treasury yields, leaving it vulnerable to further declines.
The precious metal remains under pressure as Brent crude nears $100 a barrel, stoking inflation fears and bolstering demand for the safe-haven Dollar. Reports of Red Sea vessel attacks and potential US military action against Iran have heightened geopolitical risks, supporting Treasury yields and weighing on non-yielding assets like silver.
Technical indicators suggest a neutral near-term bias, with XAG/USD holding within a horizontal range between $58.33 and $54.77. The Relative Strength Index hovers near 51, while the MACD remains slightly negative, signaling limited momentum in either direction.