Silver Price Forecast: XAG/USD jumps to near $37 amid drop in US Dollar, bond yields

Silver price (XAG/USD) rose 1.25% to near $67.00 during Asian trading on Tuesday as the US Dollar (USD) and US Treasury Yields faced pressure, prompting investors to focus on the upcoming Consumer Price Index (CPI) data on Friday. The US Dollar Index (DXY) saw a 0.1% drop to around 98.83 after recovering from earlier losses. The 10-year US Treasury Yields declined by 0.17% to near 4.77%.

Lower bond yields improve the allure of non-yielding assets like Silver. Market participants will closely monitor the US CPI data to gauge the Federal Reserve's (Fed) monetary policy outlook. TD Securities anticipates the August CPI report to indicate "underlying inflation stayed under control," with core prices rising 0.19% month-over-month (2.3% year-over-year).

The bank expects the "services segment" to drive gains, while "core goods prices likely acted as a drag by posting a modest month-over-month drop." However, TD also warns of "risks to our forecasts" skewed to the upside, assuming large price declines in tariff-exposed goods categories like apparel and household goods.