Silver Price Outlook: XAG/USD Rebounds Above $36.50 on Weaker US Dollar

Silver Price Outlook: XAG/USD Rebounds Above $36.50 on Weaker US Dollar

Silver (XAG/USD) regained upward momentum on Thursday, climbing back above $36.50, as the US Dollar softened on the back of dovish Federal Reserve (Fed) minutes and retreating US Treasury yields.

Dovish Fed Minutes Undermine USD Strength

The FOMC meeting minutes released Wednesday signaled increased division among policymakers, with a majority expecting at least one rate cut this year. This dovish bias weakened the Greenback, fueling demand for precious metals like silver.

US Treasury Auction Pushes Yields Lower

A successful $39 billion auction of US 10-year Treasury notes further pulled yields down, ending a five-day rally. The decline in yields weighed on the USD and improved the relative appeal of non-yielding assets like silver.

XAG/USD Technical Levels to Watch

Silver now trades near $36.55, eyeing resistance at:

• $36.80 – Short-term breakout level
• $37.25 – Next bullish confirmation zone

A break above these levels could signal a continuation of the uptrend.