At 12:40 GMT, XAG/USD is trading $33.99, up $0.29 or +0.85%.
The precious metals complex found support as US Treasury yields suffered a notable decline on Thursday, with the benchmark 10-year yield falling more than 5 basis points to 4.19%. This pullback from Wednesday’s three-month peak has created a favorable backdrop for silver prices.
The dollar’s simultaneous pullback from recent highs adds another element of support, although the overall strength of the currency, which is near a three-month high, continues to influence trading patterns in the precious metals markets.
Recent commentary from Federal Reserve officials has introduced new complexity to the rate cut timeline. Philadelphia Fed President Patrick Harker’s emphasis on a “slow, methodical approach” to monetary policy adjustments has prompted traders to revise their expectations for aggressive easing.
This policy recalibration is being felt in the currency markets and is particularly affecting the Japanese yen, which weakened to 153.19 against the dollar, marking its lowest level since late July.
Institutional demand underlies price levels
Silver’s impressive gain of 40% year to date underlines its continued appeal as a safe haven. The approaching US elections, now only ten days away, combined with broader geopolitical tensions, are keeping investment demand stable. Continued substantial purchases of precious metals by central banks provide an additional layer of price support, providing a robust foundation for current price levels.