Silver surges to a new high within the year? US Treasury yields plunge, boosting prices, bulls poised to advance

2026-01-05 15:46:31

Yield Drop Sparks Silver Rally

Recently, silver prices reached $51.37, driven primarily by a significant decline in U.S. Treasury yields. This drop broke the previous interest rate environment, weakening the dollar’s attractiveness and providing upward momentum for dollar-denominated silver.

Technical Signals Indicate Strength

Based on the Relative Strength Index (RSI), the bulls currently hold the advantage. In the short term, silver continues its rebound trend. As long as it successfully breaks through the key resistance at $52.46 (the high created on November 13), it could further challenge the year-to-date high of $54.46. Once this important level is reclaimed, the new milestone of $55.00 will come into traders’ view.

Downside Risks to Watch

Bearish risks should not be overlooked. If silver falls below $51.00, it will face support at $50.00. If that level is broken, the 20-day moving average at $49.67 will serve as the next defense point, with the 50-day moving average at $48.45 waiting below.

Overall, the RSI indicates a higher probability of upward movement, but traders should closely monitor the above key levels to develop appropriate risk management strategies.

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