Silver Tops $41 on Fed Cut Bets

Silver traded near $67 an ounce on Thursday after surging nearly 6% in the previous session, underpinned by a sharp retreat in US Treasury yields as the government moved to rein-in long-term borrowing costs. The US Treasury Department announced it will more than double repurchases of 10-, 20- and 30-year debt in the next few months as the 30-year yield surged to its highest level since 2007 earlier this week. Lower borrowing costs reduce the opportunity cost for markets to hold precious metals, which carry no coupons, making them more attractive to investors. Meanwhile, minutes of the Federal Reserve's July meeting confirmed that some policymakers argued in favor of raising interest rates this year to prevent sharper inflationary pressure later on. Elsewhere, heightened uncertainty in the Middle East as the US and Iran remain at a stalemate kept inflationary risks in focus.

Silver increased to 66.78 USD/t.oz, the highest since June 2026. Over the past 4 weeks, Silver gained 18.37%, and in the last 12 months, it increased 76.07%.

Silver prices rose to $65.5 per ounce on Wednesday, the highest in two months, after the US Treasury announced that it would double its buyback operations on long-term securities. The measure triggered a sharp decline in longer-term Treasury yields, aligned with other efforts to limit pressure the long-end of the curve by the department, such as intervening on the yen market and calling on the Federal Reserve to increase limits on the FIMA facility. Lower borrowing costs improve the appeal of holding precious metals that bear no interest payments. In turn, industrial demand for silver also supported bids. Chinese imports of silver-bearing ores surged 62.5% annually in June to 219,000 tonnes. The data was in line with an expanding production for solar panels and electricity grids. Still, lingering risks of a flare-up in energy prices maintained silver relatively close to the seven-month low of $55 per ounce from July 16th.