Silver Price Forecast: XAG/USD regains ground amid a pullback in US Treasury Yields
Silver price (XAG/USD) is up 2% to near $60.40 during the European trading session on Friday, reversing its entire Thursday’s losses. The white metal strengthens as its appeal has improved due to a pullback in United States (US) Treasury Yields.
At press time, 10-year US bond yields are up 0.17% to near 2.44%. However, they corrected sharply on Thursday after failing to extend rally beyond the two-decade high at 5.36%. A pullback in US bond yields rally has also weighed on the US Dollar (USD). In early European trade, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.1% lower to near 102.00. Technically, a lower US Dollar improves risk-reward conditions for the Silver price.
However, financial markets argue that it would be early calling a pause in the US Dollar and US Treasury Yields as the conflict between the US and Iran is still intact.
Dollar dip seen as temporary as geopolitical oil premium persists
Strategists at ING observe that the Dollar "lost a bit of ground yesterday as Treasuries took a breather," but they stress that they "don’t see signs of a broader USD correction brewing." They also highlight the geopolitical backdrop, noting that while US President Donald Trump has indicated the US "won’t attack Iran before the 3 November midterms," the oil market "is reluctant to price out the geopolitical premium that has kept prices above $100/bbl despite improved Gulf supply."
Going forward, the major trigger for the Silver price will be the US Consumer Price Index (CPI) data for September, which will be released on Wednesday.
Silver Technical Analysis
In the daily chart, XAG/USD trades at $60.40, keeping a bearish near-term bias as spot holds beneath the 20-day Exponential Moving Average (EMA) at $62.14. The downside skew is reinforced by the Moving Average Exponential (20, close, 0) capping the price overhead, while the Relative Strength Index (14) at 41.86 remains below the midline, hinting at persistent but not extreme selling pressure.
On the topside, initial resistance is defined by the 20-day EMA at $62.14, and a sustained break above this barrier would be needed to ease the current bearish tone and open the way to higher levels. Looking down, the two-month low at $58.50 is the key supprot level.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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BUZZ - Broker Perspectives: Analysts Express Doubts Over Starbucks and Chipotle Acquisition
Latest Update October 9 – The Financial Times reported on Thursday that Starbucks (SBUX.O) has explored a potential acquisition of Chipotle (CMG.N). This move would bring CEO Brian Niccol back to the Mexican burrito chain he once led. Starbucks declined to comment, saying the company remains "fully focused" on its business turnaround. Chipotle's stock fell about 4% to $31.32 on Friday, after surging 6.2% in the previous trading session. Limited strategic rationale BTIG expressed "high skepticism," stating that the deal does not make sense operationally, would cause significant dilution for Starbucks shareholders, and would disrupt management operations. "Over the years we've heard many stories about multi-brand acquisitions... but few have materialized, and even fewer have succeeded," BTIG noted. William Blair pointed out that Starbucks’ $9.4 billion net debt as of June makes it difficult to finance an acquisition and could push the combined company’s leverage ratio to about six times—considered high for the restaurant industry. D.A. Davidson stated the probability of the deal succeeding is 20% or less, given the significant differences between the brands and the apparent lack of clear synergies. Raymond James noted that due to the low overlap in menus, supply chain benefits are likely limited, while performance among multi-brand restaurant platforms has been mixed. eMarketer’s Suzy Davidkhanian commented that Niccol's familiarity may reduce execution risk, but investors might still see the deal as a "costly distraction" during Starbucks’ transformation. (For the convenience of non-English speakers, Reuters automatically translates its reports into several other languages. Automated translation may be inaccurate or fail to include necessary context; Reuters does not guarantee the accuracy of automated translated text and provides it solely for readers’ convenience. Reuters accepts no responsibility for any damage or loss resulting from the use of automated translation functions.)
