- Silver is pulling back and is currently testing the $ 26.00 level.
- A recovery in the US dollar and bond yields from previous lows is weighing on precious metals.
The spot prices of the silver (XAG / USD) are retreating and have returned to the $ 26.00 level from the European session highs above the $ 26.40 level. That means silver is back in negative territory, down about 0.77% or just under 20 cents on the day.
US government bond yields and the US dollar remain the key drivers for the precious metals markets. During today’s session, US government bond yields have risen, with the benchmark 10-year bond, which had fallen 4 basis points below the 1.50% level, is now trading unchanged at around 1.52%. Weekly US Unemployment Claims Figures Come in as Expected. For the weekend ending March 6, 712,000 Americans signed up for unemployment benefits, slightly below expectations of 725,000 claims. Meanwhile, the number of Americans who continued to claim unemployment benefits in the week ending February 27 was slightly lower than expected at 4,144,000 versus consensus expectations of something closer to 4,220,000.
While the recent recovery in low US bond yields is a factor weighing on precious metals, the recent recovery of the US dollar is another one. The dollar appears to be getting support from a combination of stronger-than-expected US labor market data and the recovery associated with yields, as well as some weakness in the euro in the wake of Thursday’s ECB meeting. .
In short, the reaction to Thursday’s ECB meeting has been pessimistic as the central bank chose to explicitly state that it will accelerate the rate at which it buys bonds over the next three months to make sure that European government bond yields don’t go too high. Markets were not expecting such a clear message from the central bank’s intention and This has caused European bond yields and the euro to fall (which is helping the US dollar at the expense of precious metals).
Silver technical levels
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