Silver Price Forecasts: XAG/USD stands tall near $67 supported by US Treasury’s buybacks

Silver's (XAG/USD) price is hovering around $67.00 on Thursday, close to Wednesday's gains. The metal is supported by a weaker US Dollar, as the US Treasury announced a plan to boost liquidity support for longer-dated securities, driving yields down. The plan aims to ease pressure on US long-term Government bonds, as the 30-year note's yield hit a 19-year high of 5.33% earlier this week.

Treasury Department data revealed national debt surpassed $40 trillion on Tuesday, prompting investors to demand higher compensation for bond purchases. Analysts from MUFG/BTMU suggest that the easing policy backdrop for the dollar, coupled with the Treasury's efforts to contain long-end yields, may limit dollar upside. While buybacks alone are unlikely to change long-term fundamentals, they indicate policymakers' willingness to counter further yield increases, bolstering the relative-rate story that supports the dollar.

XAG/USD trades at $67.08, with a constructive bias in the near-term structure, and bulls pushing against the resistance level at $67.10. Positive momentum indicators on the daily chart include an RSI above 60 and a MACD line trending higher than the Signal line. A confirmation above the June 22 high of $67.17 could clear the path towards the $70.00 psychological level and the key resistance area between the mid-June highs at $71.60 and the 200-day Simple Moving Average (SMA) around $72.00. Downside attempts have been capped above $66.63 so far on Thursday.