Silver Jumps 3.55% as Oil Pullback Eases Inflation Fears
Spot silver rose 3.55% on Thursday, outpacing gold's 1.83% gain. The rebound followed a drop in the 10-year Treasury yield to 4.95%. Oil prices corrected for the third consecutive session. These factors reduced immediate inflation pressure.
Spot silver gained 3.55% on Thursday. Spot gold rose 1.83% in the same session. Both metals rebounded as market pressure eased. The 10-year Treasury yield fell to approximately 4.95%. This followed a period where the yield moved above 5%.
Oil prices corrected for the third straight day. Markets noted potential alternative supply routes in the Middle East. Reports indicated that part of Saudi Arabia's East-West pipeline could return within days. This development eased immediate inflation concerns. Lower inflation expectations supported precious metal prices.
Treasury Yields and Oil Impact
The decline in Treasury yields reduced real yield pressure. This directly benefits non-yielding assets like gold and silver. Oil remains above $100 due to ongoing regional tensions. The Federal Reserve has signaled that further rate hikes may follow. These conflicting forces create volatility in the market.
Silver Technical Levels Defined
Silver rebounded from the 50-day moving average near $62. This level serves as key support for the metal. Strong resistance exists at the 200-day moving average near $73. The Relative Strength Index has moved above the midline. This indicates bullish short-term momentum for silver.
A break above $73 would target the $89 region. Traders watch the $66 level for immediate resistance. Exceeding $68 could open the way to the $72-$73 zone. A drop below the $62 support would weaken the outlook. Prices could then fall toward the $55 area.
Gold Breakout Thresholds
Gold rebounded from the 50-day SMA near $4,270. The price remains weak until it breaks $4,530. A confirmed move above this level targets the $4,800 region. This target aligns with a descending trendline from January 2026 highs. A break below $4,270 would expose the $4,000 area.
The weekly chart shows constructive action above the October 2023 lows. Strong bullish momentum requires a break above $5,000. The 4-hour chart displays a bearish head and shoulders pattern. This pattern formed in August and remains a technical hurdle. According to GN auto markets/commodities: silver prices, volatility persists while oil stays above $100. The Fed's potential for further hikes adds to this uncertainty.
