Silver slides to $61.00, a seven-month low, as US yields surge

Silver fell to $61.00 per ounce, a seven-month low, as a surge in US Treasury yields weighed on precious metals.

The 10-year US Treasury yield jumped above 4.5%, while the 2-year yield reached 4.23%, its highest in 16 months, according to Tradeweb data. Markets are pricing in a 70% chance of Federal Reserve tightening in September, per CME Group's FedWatch Tool, after April CPI accelerated to 3.8% and the producer price index hit 6%.

Silver has traded below its 200-day moving average for four consecutive sessions and below the uptrend line for three, marking the first meaningful test of those levels since early April 2025. A decisive break below $61.00 would open the door to the $60.00 psychological level and potentially $59.00, based on Fibonacci extension levels.

Support Zone Faces Key Test at $61.00

The $61.00 area has held as support since March, when silver posted a corrective low of $61.01. A slightly higher swing low of $61.51 was set two weeks ago, forming a potential doji hammer candlestick pattern on the weekly chart. The 50-week moving average near $63.64 has also provided support, reinforcing the zone's significance.

On the upside, initial resistance stands at $63.34, the June 19 low, followed by the 20-day moving average near $70.16 and the recent swing high at $71.56. A recovery above those levels would be needed to improve the broader technical outlook.

Silver at current levels is about 28% below its 2026 peak above $89 and roughly in line with the 50-week moving average, compared with gold's more resilient consolidation near $4,500. The next catalyst for direction will be the June US personal consumption expenditures report on July 1, which will shape rate expectations.

This article is for informational purposes only and does not constitute investment advice.