Silver price forecast: Selloff accelerates as US Treasury debt buybacks pressure market

Traders Union
All News
Commodities
Silver drops 1.49% to $67.94 today

Highlights

The US Treasury plans to at least double buybacks of longer-dated government debt from September 9 to November 4.
Market liquidity and US bond yields may shift as a result, potentially influencing Silver demand dynamics in the near term.
Silver trades below key moving averages with technical indicators showing dominant bearish pressure and an expected range of $66.27 to $69.61.

Treasury buybacks poised to shift dollar and silver demand

The US Treasury Department has announced plans to at least double its buybacks of longer-dated government debt between September 9 and November 4, according to Fxstreet. This action is expected to affect market liquidity and US bond yields, factors that typically influence the dollar and, by extension, Silver prices. As these financial conditions evolve, they may continue to shape demand dynamics for Silver in the near term.

Key resistance and widespread sell signals constrain upside momentum

On the H1 chart, XAG trades below the MA-20 at $68.47 and the MA-50 at $68.89, while remaining beneath the MA-200 on the daily timeframe at $74.2. The Ichimoku Kijun stands at $68.76 and now serves as immediate resistance. Momentum remains weak, with MACD and RSI both showing a sell bias, and additional bearish confirmation from CCI and Bull/Bear Power. ADX signals neutral momentum, and Stoch RSI is inconclusive.

Downside scenario dominates as tight range limits silver’s rebound

In the short term, XAG is expected to fluctuate within a band of $66.27 to $69.61, reflecting a typical volatility range for the next 2–3 trading days. The probability of further downside is considered very high based on current readings, while the potential for a sustained move higher appears very limited unless immediate resistance levels are breached. Most likely, price will remain contained within this established range barring a decisive technical breakout.

Viktoras Karapetjanc, analyst at Traders Union, sees Silver under pressure after the recent Treasury buyback announcement. He believes macro factors like bond yields and US dollar dynamics will remain key drivers. Support for XAG looks fragile, and technical signals confirm caution. However, the news-induced liquidity shift could spur renewed interest from investors if conditions change. "If the US Treasury's actions lead to a softer dollar, I expect Silver to recover swiftly toward its resistance levels."

Earlier, analysts noted that silver was facing mixed momentum, with volatility elevated due to US sanctions on Iran and uncertainty surrounding global supply chains. The latest developments around US Treasury debt buybacks add a new factor to watch, as shifts in bond yields and dollar movement could drive further volatility, making the $66.27 to $69.61 range especially significant for near-term price action.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.