Last Updated on 06/10/2026
- Silver remains near two-month lows as higher US Treasury yields and a firmer US Dollar continue to pressure the precious metal, overshadowing weaker employment data.
- Renewed geopolitical tensions in the Middle East boosted safe-haven demand for the US Dollar after Houthi attacks in Saudi Arabia.
- Surging inflation in the services sector drove Treasury yields to 24-year highs, even as markets largely expect the Federal Reserve to keep interest rates unchanged.
Silver (XAG/USD) gives back part of its previous session’s gains, trading near $60.70 per troy ounce during Asian trading hours on Tuesday. The precious metal remains close to two-month lows as a stronger US Dollar (USD) and elevated US Treasury yields continue to outweigh supportive economic developments. Although weaker US employment data and reduced expectations of a Federal Reserve rate hike in October have offered some relief, pressure across the broader precious metals market remains elevated.
The US Dollar strengthened further as renewed geopolitical tensions in the Middle East fueled demand for safe-haven assets. According to Xinhua News Agency, Yemen’s Houthi movement claimed responsibility on Monday for coordinated attacks targeting locations in Saudi Arabia, reportedly involving ballistic and cruise missiles as well as drones. Houthi spokesman Yahya Saree said the strikes targeted military installations, an oil facility, and major transport infrastructure, including Riyadh’s King Khalid International Airport. Disruptions to air traffic added to market uncertainty and supported demand for the US Dollar.
Silver also remains under pressure from a sharp rise in US Treasury yields, which climbed to their highest levels in 24 years amid a broad global bond selloff. The move has been driven by growing fiscal concerns and persistent inflation pressures. Recent ISM figures showed that input prices in the US services sector increased at their fastest pace in more than four years last month. Despite markets pricing in roughly a 78% probability that the Federal Reserve will leave interest rates unchanged following weaker labor-market data, higher Treasury yields and a resilient US Dollar continue to weigh on Silver.
G7 Bond Yields Rise as HSBC Points to Sharp Repricing in Long-Dated Debt
HSBC strategists highlighted that G7 bond yields have increased by around 1 percentage point since January, with long-term US Treasury and UK Gilt yields moving well above 5%. The bank characterized the move as a significant repricing across core interest-rate markets, while identifying three competing explanations for the rise. The shift has intensified debate over the factors driving higher real yields and what the move could mean for fixed-income investors.
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