Silver price plunges over 6% as strong US dollar and rising Treasury yields pressure metal

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Silver slides 6.28% today to $55.54

Highlights

Silver prices have come under pressure from a strong US dollar and higher US Treasury yields, raising holding costs for the metal.
Fluctuations in geopolitical conditions, shifting inflation expectations, and steady industrial demand underpin current market dynamics in silver.
Technicals show silver trades below major moving averages with all momentum signals negative and a projected $53.24 to $57.02 range over five days.

Cautious sentiment persists as geopolitical tension and yields drive flows

Recent developments indicate that Silver has been pressured by a strong US dollar and increases in US Treasury yields, which raise the opportunity cost of holding the metal. Trading has been characterized by cautious sentiment and intermittent rebounds. Price dynamics have also been influenced by geopolitical factors and changing inflation expectations, with industrial demand continuing to provide a foundation in global markets.

Anton Kharitonov, expert at Traders Union, believes Silver’s technical setup is firmly bearish and sellers remain in clear control. He notes the commodity is trading below all major moving averages, with weak momentum and strong resistance at $56.60 capping any attempted rebounds. Kharitonov is critical of the recent price action and stresses that fundamentals — such as rising yields and dollar strength — continue to present a hostile environment for the metal. He points to the alignment of multiple momentum indicators on the downside, confirming persistent selling pressure. “Until Silver decisively clears $57.02 or the macro backdrop truly shifts, I see further declines as much more likely than any sustainable recovery,” says Kharitonov.

Viktoras Karapetjanc, expert at Traders Union, emphasizes that while Silver faces headwinds from a stronger US dollar and rising yields, industrial demand offers underlying resilience. He sees global demand and shifting inflation expectations as catalysts for future upside. Karapetjanc remains confident that market volatility creates trading opportunities, especially if the price stabilizes near current support. “The bullish structure remains intact as long as the $53.24 floor holds — I expect renewed upward momentum once macro sentiment improves,” says Karapetjanc.

Parshwa Turakhiya, analyst, sees Silver operating in a sharply sentiment-driven environment with heavy pressure from bears. He highlights that near-term momentum indicators show clear oversold conditions, which could set the stage for rapid, sentiment-led rebounds in the short term. Turakhiya notes that price is trapped between key levels, so traders should watch for volatility spikes. “If Silver snaps back above $56.60, intraday bulls could find quick gains — but caution is vital while sellers steer the trend,” says Turakhiya.

Bearish momentum confirmed as technical barriers reinforce seller control

XAG/USD is trading below all major moving averages, currently underneath the MA-20 at $61.78, MA-50 at $64.46, and MA-200 at $69.02. This positioning signals ongoing short-, medium-, and longer-term pressure from sellers, with $56.60 acting as immediate resistance and $53.24 as the nearest support. Bearish alignment between the MA-50 and MA-200 confirms the dominant downward trend. Momentum indicators reinforce prevailing weakness: MACD signals a continued sell bias, ADX at 18.77 points to a weak trend, RSI reads at 36.68 (Sell), and the Stochastic RSI is deeply oversold at 3.47. The CCI also indicates selling pressure, and BBP at -0.23 confirms sellers dominate intraday movement, with an 'Oversold' status. All intraday and momentum signals align on the downside.

Earlier, analysts noted that silver was under sustained downside pressure, with technical indicators pointing to persistent bearish momentum. The current article reinforces this negative outlook, highlighting a dominant downward trend and underscoring $53.24 as the key support level to watch for potential further declines.

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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