Silver Price Forecast: XAG/USD rallies to near $66.80 amid correction in oil prices, US yields

Silver price rises further to near $66.80 as both US Treasury Yields and oil prices correct.
Hawkish repricing of Fed’s interest rate expectations has weighed on US bond yields.
Oil prices have corrects as Saudi Arabi confirms exploring ways to ship energy.

Sagar Dua FXStreet

Silver price (XAG/USD) extends its upside on Friday, trading 2.26% higher at around 66.80 during the European session. The white metal strengthens due to correction in oil prices and United States (US) Treasury Yields.

The WTI Oil price has corrected to near $95.30 from an almost four-month high of $102.11 as Saudi Arabia confirms mulling ways to export energy. Lower oil prices ease fears of high inflation expectations, a scenario that diminishes fears of interest rate hikes from central banks, which improves the appeal of non-yielding assets, such as Silver.

Additionally, some relief from rising US Treasury Yields due to a pause in the oil rally and hawkish repricing of Federal Reserve (Fed) interest rate expectations has also strengthened the Silver price.

According to TD Securities, a combination of "already-hawkish Fed pricing, increased inflation-fighting credibility, and worries about higher rates impacting growth, should help keep 10-year yields contained."

As of writing, 10-year US Treasury Yields trade close to ongoing week’s low near 4.94% after hitting a 19-year high of 5.04% on Tuesday.

Meanwhile, a firm US Dollar due to a sharp increase in hawkish Fed bets could limit the upside in the Silver. At press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, is flat but close to its over six-week high of 100.37 posted this week.

Technically, a higher US Dollar makes the Silver price an unfavorable risk-reward bet for investors.

Silver Technical Analysis

In the daily chart, XAG/USD trades at $66.72, holding a bullish near-term bias as price remains above the 20-day Exponential Moving Average (EMA) at $65.15. The location of spot above this key trend metric suggests underlying demand is still in control, while the Relative Strength Index (RSI) at 54.97 stays in neutral-to-positive territory, hinting that bullish momentum is constructive but not overstretched.

On the downside, immediate support is seen at the 20-day EMA around $65.15, which reinforces the recent breakout area and would be expected to attract buyers on shallow pullbacks. On the upside, the white metal needs a decisive break above the September 9 high of $68.33 to revisit the three-month high at $71.12.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Silver FAQs

Why do people invest in Silver?

Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

Which factors influence Silver prices?

Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.

How does industrial demand affect Silver prices?

Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.

How do Silver prices react to Gold’s moves?

Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

AUD/USD bulls seem hesitant below 0.7050 ahead of RBA on Tuesday

AUD/USD reverses an Asian session dip on Monday as renewed optimism over Iran diplomacy boosts investor confidence, keeping a lid on the safe-haven US Dollar and supporting the risk-sensitive Aussie. Spot prices, however, remain below the one-month high, touched last Thursday, as bulls wait for the crucial RBA decision before taking fresh positions.

USD/JPY climbs to 158.00 neighborhood as BoJ uncertainty weighs on the JPY

The USD/JPY pair gains some positive traction at the start of a new week, recovering further from Friday's post-Bank of Japan (BoJ) swing low to sub-157.00 levels. The momentum lifts spot prices to the 158.00 neighborhood during the Asian session and seems unaffected by fresh intervention warning from Japan's Finance Minister Satsuki Katayama.

Gold finds relief from Oil’s decline as traders await key US economic data

Gold retains a positive bias during American trading hours on Monday after sliding to a fresh yearly low of $3,870 on Friday and ending October down 6.87%. A pullback in Oil prices amid diplomatic efforts between the US and Iran supports the precious metal. However, the rebound lacks conviction as the fundamental backdrop continues to raise doubts over a sustained recovery.

Dogecoin risks deeper slide as whales diverge

Dogecoin hovers around $0.075 on Monday after falling for the fifth consecutive week since the end of September. Santiment data shows diverging whale activity, as large holders reduce their positions while smaller whale wallets accumulate tokens. Meanwhile, weakening on-chain metrics and a deteriorating technical outlook suggest that DOGE could remain vulnerable to further losses.

Why strong US growth could not stop the bond rally and AI selloff

The US economy grew at a 3.4% annual rate, yet Treasury yields fell and the Nasdaq ended October with its worst monthly performance since March 2025. The market is no longer rewarding capital expenditure simply because it supports growth. Investors are testing whether that expenditure can produce cash flow and returns above the cost of capital.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.