Last Updated on October 1, 2026 by Deon
Silver price (XAG/USD) is staying under pressure near the $60 level. This is happening because US Treasury yields keep rising and that makes non-yielding assets like silver less attractive. Even though US inflation data came in softer than expected silver still struggles to bounce. Traders are now focusing on the US employment numbers for new clues about what the Federal Reserve might do.
The white metal has been stuck near its four-week low. That shows how cautious the market still is. Higher borrowing costs and stronger yields make interest-bearing investments more appealing. That pulls money away from silver, which doesn’t pay interest.
Treasury Yields Create Pressure
One of the problems for silver is the jump in US Treasury yields. The 10-year Treasury yield has moved up to 5.3% hitting a multi-decade high. When yields go up investors often prefer bonds or other interest-bearing assets over silver. That reduces demand for silver.
At the time higher yields have helped boost the US Dollar. A stronger US Dollar makes silver more expensive for buyers using currencies. Since silver is priced in US Dollars a rising greenback adds another obstacle for XAG/USD.
Softer Inflation Offers Limited Relief
The inflation data released this week gave a small boost to precious metals. August PCE inflation rose 0.3% month over month. Core PCE increased 0.2%. Both numbers were lower than expected. Annual headline PCE inflation slowed to 3.4% down from the 3.7% forecast.
These lower inflation numbers reduced the chance of a Fed rate hike in October.. Still silver hasn’t found enough strength to recover. The reason is that Treasury yields are still high. So even if inflation cools strong yields keep the pressure on silver.
This shows that one economic report alone does not move the market. Traders are looking at a picture. They are watching US growth, employment data, energy prices and overall inflation trends.
Fed Expectations Remain Important
Market expectations for a Fed rate hike in October have gone down.. Uncertainty still exists about the central bank’s next steps. TD Securities says strong economic growth and renewed inflation risks could keep influencing the Fed’s outlook.
For traders this means a balancing act. Lower interest-rate expectations can help metals.. Strong economic data and rising yields push silver in the opposite direction.
That’s why the upcoming US Nonfarm Payrolls report is so important. A strong jobs report could support monetary policy. A weak report could ease pressure on interest rates.
Oil Prices Add Another Risk
Higher oil prices are also affecting silver. Rising energy costs can fuel inflation concerns. That in turn could lead to expectations for aggressive Fed action.
Recent tensions in the Middle East and the Strait of Hormuz have added uncertainty to energy markets. Higher oil prices can indirectly affect silver by shaping inflation expectations Treasury yields and Fed policy views.
Silver Technical Outlook
Technically XAG/USD is still in a position. It has traded below moving averages. Recent analysis from FXStreet shows silver below its 50-day 100-day and 200-day moving averages. That keeps the technical outlook under pressure.
The $60 level is a near-term area. A sustained move below that level could open the door to further downside. The $58 level is seen as a support zone.
On the upside silver needs to break above resistance around $62. Once that happens the $63 to $64 area becomes more relevant. A move above those levels would suggest that buyers are starting to take control.
What Could Move Silver Next?
The US employment report will likely remain a driver in the market. Traders will look at job creation and unemployment data for hints about the economy and the direction of Fed policy.
Treasury yields and the US Dollar will also stay important. If yields keep rising silver could face downward pressure.. If yields fall and the US Dollar weakens, XAG/USD might find room to recover.
Silver Price Outlook
Silver remains under pressure near $60. Elevated Treasury yields and a strong US Dollar are outweighing support from inflation data. The short-term direction of silver will depend heavily on US data Fed expectations and bond yield movements.
For now traders are watching the $60 support level closely. A break below it could lead to levels. A recovery, above $62 could improve the term technical picture.
The next major event is the US Nonfarm Payrolls report. That data could give insight into labor market strength and influence views on future Federal Reserve decisions.
