- Silver price falls after a less-confident pullback move as US bond yields recover.
- US yields recover as Fed advocates only one rate-cut this year.
- Investors await the US Retail Sales data for fresh cues on interest rates.
Silver price (XAG/USD) falls back to the crucial support of $29.00 in Monday’s European session after a short-lived pullback to near $29.60. The white metal comes under pressure as US bond yields rebound. 10-year US Treasury yields recover to near 4.24% as Federal Reserve (Fed) officials continue to argue in favor of reducing interest rates only one this year.
Higher yields on interest-bearing assets increase the opportunity cost of holding an investment in non-yielding assets, such as Silver.
On Friday, Chicago Fed Bank President Austan Goolsbee said that cooler consumer and producer inflation reports for May have relieved him. However, he wants to see similar data for months before lowering interest rates.
This weekend, Minneapolis Fed Bank President Neel Kashkari said it’s a "reasonable prediction" that the central bank will cut interest rates once this year and wait until December to do so.
Contrary to Fed officials’ verdict, investors expect that the Fed will deliver two rate cuts this year one in September and next in November or December’s meeting.
Meanwhile, the US Dollar Index (DXY) holds gains near a six-week high around 105.80. Going forward, investors will focus on the United States (US) monthly Retail Sales data for May, which will be published on Tuesday. The Retail Sales data is estimated to have grown by 0.3% after remaining flat in April.
Silver technical analysis
Silver price trades in a Falling Channel chart pattern in which each pullback is considered a selling opportunity by market participants. The asset struggles to hold above the 200-period Exponential Moving Average (EMA), which trades around $29.40, indicating uncertainty in the overall trend.
The 14-period Relative Strength Index (RSI) oscillates in the 40.00-60.00 range, suggesting a consolidating ahead.
Silver four-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD jumps back above 1.1000 on renewed US Dollar sell-off
EUR/USD is posting sizeable gains above 1.1000 in early Europe on Monday. EU prepares for retaliatory tariffs and rekindles the global trade war and US recession fears, drowning the US Dollar again aross the board. Traders now look to the EU Sentix and Retail Sales data.
GBP/USD holds recovery gains above 1.2900 amid fresh US Dollar weakness
GBP/USD clings to recovery gains above 1.2900 in European trading on Monday. The pair capitalizes on renewed US Dollar weakness as risk sentiment takes a fresh hit, with European traders hitting their desks. Trump's tariffs-led US recession fears and dovish Fed bets keep the USD undermined.
Gold price rebounds swiftly from multi-week low; lacks follow-through
Gold price reverses an Asian session slide to over a three-week low, though it lacks follow-through. Recession fears continue to weigh on investor sentiment and benefit the safe-haven commodity. Bets for more aggressive Fed rate cuts undermine USD and also lend support to the XAU/USD pair.
Crypto market wipes out $1 billion in liquidation as Asian markets bleed red
The crypto markets continue to decline on Monday, with Bitcoin falling below $78,000. The Asian markets also traded in the red, with Japan’s stock market extending losses to 8.5%, its lowest level since October 2023.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.