Global Markets
S&P 500 — US Large Cap Index
NASDAQ 100 — Tech Growth Index
Dow Jones — Industrial Average
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
S&P 500 — US Large Cap Index
NASDAQ 100 — Tech Growth Index
Dow Jones — Industrial Average
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
AED • EUR • GBP • USD IBANs   |   CROSS BORDER FX   |   LOCAL CURRENCIES   |   GLOBAL COVERAGE
SilverTechnical Analysis

XAG/USD surges to near $53 despite rising US bond Yields

  • Silver price soars to near $53 despite sell-off US bond market.
  • Hotter-than-expected US CPI data for October has boosted US Treasury yields.
  • Commerzbank sees the US inflation remaining elevated next year too.

Silver price (XAG/USD) is up almost 3% to near $53.00 during the European trading session on Wednesday. The white metal rallies even as debate that the Federal Reserve (Fed) could deliver a supersize interest rate hike in the December policy meeting has heated, following the release of the hotter-than-projected United States (US) Consumer Price Index (CPI) data for October. This has resulted in a sharp increase in yields on US Treasuries

US inflation surprise keeps pressure on Treasuries

Strategists at Deutsche Bank highlight that the inflation data were the key catalyst for the latest bond selloff, noting that “that US CPI print drove the biggest moves of the day, with the monthly core CPI print for October above consensus at +0.30% (vs. +0.2% expected).”

Deutsche Bank points out that “moreover, it was the third consecutive month with core CPI at +0.3%, and if you take those three months together, the annualised pace for core CPI is running at +3.75%.” According to the bank, “that’s the fastest pace on that measure since April 2024, so it made it increasingly difficult to dismiss this as a blip.”

The bank also underscores that “meanwhile, the headline CPI numbers were faster still, with monthly headline CPI at +0.35% (vs. +0.3% expected), with the 3-month annualised pace at +5.72%.” In their view, “for markets, the clearest impact could be seen in US Treasuries, with yields surging across the curve.”

As of writing, 10-year US Treasury Yields are 2.4% higher at around 5%. Technically, higher yields on US interest-bearing assets diminish the appeal of non-yielding assets, such as Silver.

What are expectations for the US inflation outlook?

Economists at Commerzbank caution that US price pressures remain uncomfortably elevated, stressing that “prices are still rising too quickly, even though the increase was somewhat smaller than in September.” They highlight that “core inflation, a key gauge of the underlying trend, thus remains (too) high and is no longer trending downward,” underscoring their view that underlying price dynamics have stalled rather than continued to improve. In their assessment, “the strong economy and the ongoing conflict in the Middle East suggest that inflation is unlikely to ease in the near term,” and they judge that “inflation is not expected to decline until 2027, and even then, it is likely to remain above a level consistent with price stability.”

Such a scenario will likely keep the Silver price under pressure.

Silver Technical Analysis

In the daily chart, XAG/USD trades at $52.94. The metal holds below the 20-day Exponential Moving Average (EMA) at $53.89, keeping the near-term tone bearish, as recent attempts to stabilize have not yet reclaimed this dynamic barrier. The Relative Strength Index (RSI) at 43.6 has recovered from oversold territory but remains below the 50 line, suggesting only modest easing in downside momentum rather than a confirmed shift in trend.

On the topside, initial resistance is defined by the 20-day EMA at $53.89, and a sustained break above this level would be needed to soften the current bearish bias and open the way for a more meaningful recovery. With no clear nearby structural supports derived from the provided indicators, the downside remains vulnerable while price trades beneath the EMA, leaving XAG/USD exposed to further weakness if sellers reassert pressure below recent lows.

Register a Revolut Business Account
```

Market Analysis & Disclaimer

The market information, analysis, commentary, forecasts and opinions contained in this publication are provided by Octalas Group Ltd on behalf of Today Markets and Currency Hedger using information and data obtained from sources believed to be reliable. However, Octalas Group Ltd, Today Markets and Currency Hedger do not warrant or guarantee the accuracy, completeness or timeliness of the information presented and accept no responsibility for any loss or damage arising from reliance upon information contained herein, to the extent permitted by applicable law.

Market forecasts, expectations and opinions are based on analysis of available information and a number of assumptions regarding economic, financial, political and market conditions. Such assumptions may prove to be incorrect, and actual market developments may differ materially from those described or anticipated.

Nothing contained in this publication constitutes investment advice, financial advice, a personal recommendation, an offer, solicitation or invitation to buy, sell or otherwise transact in any financial instrument or investment product. The information is provided for general informational and educational purposes only and does not take into account the investment objectives, financial situation, experience or particular circumstances of any individual reader.

Past performance is not indicative of future results. Financial markets, including foreign exchange, commodities, equities, derivatives and other financial instruments, involve risk and prices can move rapidly. Readers should conduct their own independent research and, where appropriate, obtain advice from an appropriately authorised financial professional before making any investment or trading decision.

Where this publication refers to Today Markets, it represents market news, research, analysis and commentary published for informational purposes. Where Currency Hedger is referenced, it represents commentary concerning foreign exchange, currency exposure, international payments and hedging-related topics. References to particular financial instruments, markets, companies, currencies or commodities should not be interpreted as a recommendation to transact in them.

Octalas Group Ltd, Today Markets and Currency Hedger may have commercial interests or relationships with businesses, financial-service providers, technology providers or other market participants mentioned in their publications. Where relevant, such relationships or interests may create potential conflicts of interest. Appropriate measures are intended to be taken to ensure that published analysis and commentary are presented objectively and that commercial considerations do not determine the substance of market analysis.

The views expressed in this publication are those of the author or contributors at the time of publication and may change without notice as market conditions develop. Readers should not assume that any information contained herein has been updated following publication.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button