Silver (XAG/USD) remained steady on Thursday, trading just above $67.00 at the opening of the European session and maintaining most of its gains from Wednesday [1]. The precious metal found support from a softer US Dollar, which was influenced by the US Treasury's announcement to double liquidity support for longer-dated securities, resulting in lower yields [1]. This initiative aims to alleviate pressure on US long-term government bonds after the 30-year note yield reached a 19-year high of 5.33% earlier in the week [1].
According to data from the US Treasury Department, the national debt surpassed $40 trillion on Tuesday, prompting investors to demand higher compensation for bond purchases [1]. Analysts at MUFG/BTMU noted that the policy environment is becoming less favorable for the Dollar, citing 'moderating Fed tightening expectations and Treasury efforts to contain long-end yields' as factors likely to 'continue to cap dollar upside.' They further stated that while buybacks alone may not change long-term fundamentals, they signal policymakers' willingness to counter further yield increases, suggesting the 'relative-rate story that has supported the dollar is fading' [1].
From a technical perspective, XAG/USD is trading at $67.08 with a constructive near-term structure, as bulls test resistance at $67.10 [1]. Momentum indicators are positive, with the RSI above 60 and the MACD line trending higher above the Signal line [1]. A confirmed break above the June 22 high at $67.17 could open the way to the $70.00 psychological level and the resistance zone between the mid-June highs at $71.60 and the 200-day SMA near $72.00 [1]. Downside moves have been limited above $66.63, with further support at Wednesday's low of $62.20 and the August 6 low at $60.87 [1].
CONCLUSION
Silver prices are holding firm near $67, buoyed by US Treasury buybacks and a softer Dollar as the policy backdrop shifts. Technical indicators suggest further upside potential if resistance levels are breached, while downside risks appear contained for now. The market is closely watching US debt dynamics and Treasury actions for future direction.