Trending
Silver
Source: Newsmaker.id
Silver prices came under renewed pressure during Thursday's trading (Oct 8), with XAG/USD hovering around US$59 per troy ounce and nearing a two-month low. Silver had previously managed to hold above the psychological US$60 mark, but selling pressure intensified after the price broke below that level. Market data indicates that XAG/USD dipped to around US$58.50 before staging a slight recovery.
The pressure on silver persisted even as the US dollar and Treasury yields began to retreat slightly from their highs. The 10-year US Treasury yield had previously reached approximately 5.35%—nearing levels not seen since 2002—before easing to the 5.24% range as oil prices cooled. However, yields remaining at elevated levels continue to make non-yielding assets like silver less attractive to investors.
Regarding monetary policy, the Federal Reserve's stance remains a crucial factor for XAG/USD movements. Minutes from the September meeting revealed that some Fed officials still see a need for further interest rate hikes to keep inflation in check. Fed Governor Christopher Waller also stated that rate hikes likely remain necessary, though the timing could be flexible rather than occurring at every meeting.
Meanwhile, rising oil prices and geopolitical tensions in the Middle East continue to pose risks to the inflation outlook. High energy costs could heighten inflationary pressures, giving the Fed grounds to maintain a tight monetary policy for longer. This situation creates a dual challenge for silver, as the metal serves not only as a hedge asset but also maintains strong ties to global industrial activity.
From a technical perspective, the drop below US$60 signals that sellers remain in control. The US$59.69 level is now a key point to watch, while further declines could potentially test the US$56.56 area. Conversely, silver needs to reclaim the US$60.80–US$61 range to signal a recovery in momentum. With US yields remaining high and expectations for interest rate hikes intensifying again, XAG/USD faces the risk of continued downward pressure in the short term.
Newsmaker Analysis:
XAG/USD price action remains under pressure in the short term as long as the price stays below US$60. Although the US dollar and Treasury yields have eased slightly, elevated yield levels and the Federal Reserve's hawkish stance keep the opportunity cost of holding silver high. Meanwhile, geopolitical risks and rising oil prices present a double-edged sword: they could boost demand for safe-haven assets but also drive inflation, thereby reinforcing expectations for higher interest rates. Consequently, the US$60 area serves as a critical level for determining whether silver can rebound or if the downward pressure will persist.
Source: Newsmaker.id