Silver Prices Decline 1% Pre-Fed Minutes Amid Rising US Bond Yields

Silver and Gold Prices Move Lower Amid Rising US Bond Yields and Geopolitical Tensions

The silver price in India declined by 1% to ₹2,67,230 per kg on Wednesday, while the MCX gold price fell 0.67% to ₹1,57,959 per 10 grams. The decline in prices was due to investors being on edge against rising US bond yields, elevated crude oil prices, and uncertainty surrounding the Federal Reserve's interest rate outlook.

However, easing concerns over the United States-Iran conflict kept the decline capped. Market participants also remained cautious ahead of the release of the minutes from the US Fed's April policy meeting later in the day, which could provide fresh cues on the central bank's stance on inflation and future rate cuts.

Global Markets

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Globally, spot silver rose 1% to $74.55 per ounce, while spot gold gained 0.4% to $4,499.69 per ounce by 0059 GMT. Gold had touched its lowest level since March 30 in the previous session. Meanwhile, US gold futures for June delivery slipped 0.2% to $4,502.30 per ounce.

Geopolitical Tensions

Investors were on edge after US President Donald Trump said on Tuesday that Washington may still need to strike Iran again if required. Trump stated that he had earlier been close to approving an attack before deciding to postpone it. He also warned that additional strikes could be launched in the coming days as part of efforts to end the conflict.

However, the Republican-led US Senate signaled opposition to expanding the conflict after indicating resistance to prolonged military involvement during a procedural vote on Tuesday. Meanwhile, US Vice President JD Vance also stated that the United States and Iran had made considerable progress in negotiations, adding that neither side wanted military operations to resume.

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Elevated US Treasury Yields

Despite those comments, Brent crude continued to hold near USD 111 per barrel on Wednesday, reflecting persistent concerns over geopolitical tensions and potential supply disruptions in the region. At the same time, US Treasury yields remained elevated, adding pressure on precious metals markets.

The 10-year US Treasury yield has surged more than 20 basis points over the last four sessions, while the 30-year Treasury yield climbed to its highest level since 2007.

Key Levels to Watch

Renisha Chainani, Head - Research at Augmont, noted that Silver faces a critical juncture near $75/oz. A breach of this level would open the door to the next downside supports at $70/oz and $67/oz, respectively. On the upside, a technical rebound from current levels could carry prices back toward the $80-$82/oz zone, predicted the expert.

For the yellow metal, Chainani highlighted that it has found near-term support around the $4500/oz level. "A sustained break below this threshold would expose the next significant support at $4300/oz, representing meaningful further downside from current levels. Conversely, if prices stabilise and recover from this zone, the immediate upside target lies in the $4700-$4750/oz range," suggested Chainani.