Silver Prices Drop 2% Amid Rising US Treasury Yields and Weaker Dollar

Silver (XAG/USD) prices fell by 2% to approximately $57.50 on Friday, influenced by a rise in US Treasury yields and a softer US Dollar. This decline places silver on track to finish July in negative territory, according to FX Street.

The precious metal’s retreat reflects broader market dynamics where higher yields tend to increase opportunity costs for holding non-yielding assets like silver. Meanwhile, the weakening of the US Dollar usually supports silver, but in this case, it was insufficient to offset the pressure from bond yields.

For Japanese investors, who often monitor precious metals as a hedge against currency fluctuations and inflation, silver’s recent movement underscores the impact of US macroeconomic factors on global commodities markets.