Last Updated on 02/09/2026
- Silver prices extend their decline as a global bond selloff pushes the 10-year US Treasury yield to a 2025 peak of 4.80%.
- Escalating tensions between the US and Iran drive oil prices higher, raising concerns over potential disruptions to Middle Eastern energy supplies.
- Mixed US economic indicators keep traders focused on upcoming employment data for further clues about the Federal Reserve’s policy outlook.
Silver (XAG/USD) continues to weaken for a second consecutive session, trading near $63.40 per troy ounce during Wednesday’s Asian session. The non-yielding precious metal remains under pressure as a broad selloff in global bonds lifted the 10-year US Treasury yield to 4.80%, its highest level since early 2025. The rise in yields has renewed concerns about persistent inflation and the possibility of additional interest-rate hikes.
Inflation worries have also intensified following a sharp increase in crude oil prices amid growing tensions between the United States and Iran. The geopolitical escalation has raised fears of disruptions to energy supplies from the Middle East. TD Securities noted that the latest developments highlight the fragile nature of any agreements between the two sides, keeping geopolitical risk elevated and supporting a risk premium in oil markets.
Meanwhile, US economic indicators have delivered mixed signals. July JOLTS job openings came in below expectations at 7.27 million, while the ISM Manufacturing PMI eased to 54.6 in August from 55.6 previously. Although the reading missed forecasts, it remained firmly above the 50 threshold, pointing to continued expansion in the manufacturing sector. Investors are now awaiting the ADP employment report and Friday’s nonfarm payrolls figures for clearer indications of the Federal Reserve’s next policy move.
Fed’s Barr maintains a hawkish stance as inflation remains a concern
Federal Reserve official Barr adopted a somewhat more hawkish tone, with the FXS Speechtracker scoring his remarks at 7/10, above the historical average of 6.8. He emphasized that inflation remains elevated despite a stable labor market and solid growth supported by artificial intelligence. His conditional guidance suggests the Fed could keep interest rates unchanged if inflation continues to ease, while leaving the door open to another hike should price pressures persist.
This stance points to a tightening-leaning policy reaction function and suggests the Fed has limited tolerance for a renewed acceleration in inflation, potentially providing continued support for the US Dollar.
The FXS Fed Sentiment Index fell 0.42 points to 128.86, reflecting a modest decline in perceived hawkishness. However, the index remains well above the neutral 100 level, indicating that the broader Federal Reserve policy environment continues to favor a hawkish stance and may keep the Dollar supported against lower-yielding currencies.
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