Silver price strengthened notably as a sharp pullback in US Treasury yields provided fresh support for precious metals, with markets reassessing Federal Reserve policy outlook following yesterday’s comments from Chair Jerome Powell. The decline in yields, alongside softer rate expectations, has eased pressure on non-yielding assets, giving Silver the “oxygen” to rebound and push toward key resistance at 74.52.
The move in yields has been decisive. US 10-year yield spiked to as high as 4.484 last Friday, but faced strong rejection at the 4.500 psychological level before falling back below 4.35 yesterday. This shift reflects a reassessment of the Fed’s reaction function, particularly after Powell maintained “strategic ambiguity” while signaling that policymakers may “look through” supply-driven inflation shocks such as the recent surge in oil prices.
By effectively decoupling energy-driven inflation from immediate rate hike expectations, Powell’s comments lowered the perceived “hawkish floor” for policy. This reinforced the view that the Fed would prefer to avoid further tightening if conditions allow. The result has been a supportive backdrop for Silver’s recovery from recent lows.
Technically, further rise is in favor in Silver as long as 66.70 support holds. Firm break of 74.52 will add to the case that whole corrective fall from 121.83 has completed with three waves down to 60.97, after drawing support from 60 psychological level. That would pave the way to 55 D EMA (now at 78.33) to confirm this bullish case.
However, the bullish case remains conditional. Sustained gains in Silver are likely to depend on a continued pullback in yields or a clearer de-escalation in the Iran War risks. Without these drivers, the rebound may struggle to extend beyond resistance, leaving the current move vulnerable to renewed volatility.
