Silver futures stayed under pressure after Monday’s sell-off, trading around
$61/oz, as rising US Treasury yields and a firmer dollar raise the opportunity
cost of holding a non‑yielding asset and lift costs for overseas buyers. Markets
are pricing in another Fed rate hike in October, which adds further downside.
Zaye Capital Markets analyst Naeem Aslam said long-term supply dynamics remain
supportive: silver is set for a sixth consecutive year of supply deficit and
mine supply growth is limited. Industrial demand is the key downside risk. Aslam
added that if yields ease and the dollar weakens silver could quickly find
support, but if both remain elevated the market may test lower technical levels
before a sustained recovery.
