Silver Breaks $67 as Yield Pressure Eases

Spot silver rises 2.84% to $67.07 after bond yields decline. The rally follows a reversal in oil prices and dollar weakness following the Federal Reserve's rate hike.
Spot silver (XAGUSD) trades at $67.07, up $1.85 or 2.84% as of 08:22 GMT. The metal pushed through the $67 resistance level that held all month. The session high reached $67.13 while the low sat at $65.26.
The rally follows the Federal Reserve's 25 basis point rate hike on Wednesday. The Fed raised rates to 3.75%-4.00%, the first increase in three years. Silver sold off for one session before buyers returned. The post-Fed trade reversed as other market factors shifted.
Yield decline supports silver recovery
The 10-year US Treasury yield fell from 5.04% to approximately 4.93% by Friday. This level is near the weekly low. The 30-year yield also moved lower. The retreat in bond yields reduced pressure on precious metals.
The dollar index remains above 100 near a six-week high. However, the currency stopped climbing after the Fed decision. The combination of lower yields and a stalling dollar provided the opening for silver to rise.
Oil price drop cools inflation fears
WTI crude oil fell for a third consecutive session. Saudi Arabia indicated that roughly half of the damaged East-West pipeline capacity could return within days. The nation is considering ship-to-ship transfers off Oman. This development reduces the inflation scare that previously supported the Fed's hawkish stance.
Crude prices had surged past $102 after the pipeline damage. Lower oil prices change the calculation on how aggressively the Fed must lean hawkish. Traders now question if falling energy costs reduce the urgency for further rate hikes. This shift brought silver buyers back to the market.
Geopolitical risks remain active
The conflict involving Iran, Saudi Arabia, and the Houthis continues. A tanker was struck in the Strait of Hormuz this week. Vessel traffic remains below normal levels. The oil price pullback stems from Saudi workarounds rather than a ceasefire.
Geopolitical risk provides a floor for silver prices. Any escalation would likely send crude oil back toward weekly highs. According to GN auto markets/commodities: silver prices data, the market is currently digesting the mixed signals from energy and monetary policy.






