Silver Price Forecast: XAG/USD extends recovery above $67.00 as yields fall

Silver (XAG/USD) experienced another day of gains on Friday, climbing above $67.00 after bouncing from lower levels in the recent past. A shift in US Treasury yields, along with the Federal Reserve's cautious stance, has provided a boost to precious metals amid inflation concerns. The Federal Reserve's interest rate hike and Chair Kevin Warsh's remarks on fighting inflation have bolstered the US Dollar, but simultaneously relieved bond markets, supporting silver's price action.

The 10-year yield dropped below 5%, giving precious metals a new push. After testing a decisive support area around $62.00 this week, silver is aiming for resistance near $68.00. Momentum has improved, but the daily chart still shows mixed signals, with the Relative Strength Index near 56 and the MACD slightly below zero. For bulls to succeed, they must break through the $68.00 resistance, which could open the way to mid-June and late-August highs above $71.00 and the 200-day Simple Moving Average at $73.18.

On the downside, selling pressure may emerge near $65.20, ahead of the key support area between $62.20 and $63.05, located at the bottom of recent trading range and near a bearish Head&Shoulders pattern.