Silver Price Forecast: XAG/USD slides to fresh two-month low below $59 as US yields eye more gains

Silver price (XAG/USD) dropped to a fresh two-month low below $59 on Thursday during European trading, as US bond yields continued their upward trend fueled by optimism over improving oil prices. Analysts noted that higher yields on US-backed securities made non-yielding assets like Silver less attractive. The US 10-year Treasury yields increased by 1.3% to near 5.35%, nearing their two-decade high.

Geopolitical tensions, particularly regarding potential strikes against Iran, also contributed to renewed risk in oil markets, providing a short-term boost to Silver prices. With the Federal Open Market Committee (FOMC) minutes confirming a likely interest rate hike by the Federal Reserve this year, Silver's bearish stance is expected to persist.

Technical analysis shows that the metal has been trading beneath the 20-day Exponential Moving Average ($62.29) and faces resistance at this key trend indicator, while support can be found at the August low of $56.57.