Silver price jumps over 5% after Treasury doubles long-dated bond buybacks

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Silver surges 5.11% today to $66.58

Highlights

The U.S. Treasury Department will double buybacks of long-dated government bonds from September 9, weakening the dollar and supporting silver prices.
Silver rallied sharply after clearing a major trendline in early August, with prices responding to global bond yield swings and energy supply uncertainty.
XAG/USD surged 5.11% to $66.58, trades in a $64.9 to $68.26 range with mixed technical indicators suggesting buy momentum but short-term caution.

Bond buybacks, yield shifts and Fed policy drive silver sentiment

The U.S. Treasury Department announced plans to double buyback operations for long-dated government bonds starting September 9, fueling a sharp rally in silver as the U.S. dollar weakened. Silver maintained strong upward momentum after breaking a key descending trendline in early August, and ongoing market volatility is heightened by shifting global bond yields and energy supply concerns. Changing outlooks on U.S. Federal Reserve policy and geopolitical risks in the Middle East continue to drive sentiment in the silver market.

Anton Kharitonov, expert at Traders Union, notes the 5.11% surge in XAG/USD is driven by short-term capital flows after the U.S. Treasury’s bond buyback announcement. He remains wary since silver trades below its 200-day average and faces long-term technical resistance. Divergence in oscillators and rising intraday volatility highlight persistent downside risk. Overbought signals on multiple indicators suggest the rally may be unsustainable. "Despite the recent spike, I remain cautious — the structural trend for silver stays weak as long as it trades below $74.74."

Viktoras Karapetjanc, expert at Traders Union, sees the Treasury’s aggressive bond buyback plan as a strong macro boost for silver. He views the break above descending trendlines and ongoing dollar weakness as building blocks for further upward potential. The short- and medium-term bullish structure remains intact, with momentum-driven buyers driving price expansion. He expects positive sentiment to persist while global yields remain volatile. "Silver’s bullish structure remains intact, and I see further growth opportunities as demand and risk appetite stay robust."

Parshwa Turakhiya, analyst, highlights the intense volatility and mixed signals in silver’s current setup. Short-term sentiment is positive after the upside gap, but technical divergence suggests upcoming turbulence. He sees room for swings within the $64.9 to $68.26 range as both buyers and sellers test conviction. "Traders should watch for intraday reversals and be ready to adapt — the market’s choppy mood favors nimble, short-term setups right now."

Short-term momentum strong despite long-term resistance and mixed signals

XAG/USD is trading above its 20-day and 50-day moving averages at $61.78 and $60.17, indicating short- and medium-term bullish positioning, but remains below the 200-day at $74.74, which confirms a prevailing long-term bearish alignment. Nearest support is seen at $66.55 and resistance at $68.26, while the Ichimoku Kijun at $61.15 acts as a distant support level. Strength in the Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) signals ongoing buy momentum, while the Relative Strength Index (RSI) at 52.18 leans bullish but remains in neutral territory. Stochastic RSI shows strong sell signals, indicating the asset is approaching oversold levels; Commodity Channel Index (CCI) and Awesome Oscillator (AO) are neutral. Bull/Bear Power (BBP) is positive at 1.92 and signals buyers dominate, yet notes an overbought condition. The pair surged to $66.58, gaining $3.24 or 5.11% after opening with a downside gap of about $0.30, or -0.47%, and now sits near the session high. Intraday volatility stands at 6.17%. Momentum and price action are broadly positive, though there is noticeable divergence in oscillators, flagging potential short-term caution.

Earlier, analysts noted that silver was facing a mixed technical outlook with near-term bullish signals but persistent longer-term headwinds. The current article adds a new dimension by highlighting a surge in price momentum following U.S. Treasury policy changes, underscoring $68.26 as a critical resistance level that could determine the next directional move.

Source of Data: XAG Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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