Silver Price Forecast: XAG/USD seems vulnerable near $60 amid soaring US Treasury Yields

The silver price (XAG/USD) remains cautious near its four-week low of around $60.00 during the European trading session on Thursday. The metal is facing downward pressure due to soaring US Treasury Yields, which have reached a fresh two-decade high near 5.3%. When interest-bearing assets yield higher returns, investors tend to steer away from non-yielding assets like silver.

The odds of the Federal Reserve keeping interest rates unchanged at the October meeting have also increased to 62.4%, up from 29% a week ago, as traders have reduced expectations of rate hikes. Analysts at TD Securities expect the Fed to lift rates in October, but they are open to the possibility of a more gradual approach due to mixed signals from recent US PCE and GDP revisions.

The next significant movement in silver prices is anticipated to come from the US Nonfarm Payrolls (NFP) data for September, published on Friday. Currently, silver is trading at $60.38, maintaining a bearish near-term outlook as it trades below its 20-period Exponential Moving Average (EMA) of $63.66. The downside break from this crucial dynamic barrier indicates that sellers still dominate the market.

The Relative Strength Index (14) stands at 38.50, just above the oversold territory, signaling persistent but not exhausted bearish momentum. If silver fails to hold the $60.00 level, it could potentially slide towards the August 4 low of $58. Factors such as geopolitical instability, economic growth, inflation, the US Dollar's strength or weakness, investment demand, mining supply, and recycling rates can all impact silver prices.