Silver Price Forecast: XAG/USD Holds Near $67 Supported by US Treasury Buybacks

During the European session on Thursday, spot silver held steady around $67.18, largely retaining the previous session's gains. The US Treasury announced plans to double the size of its long-dated securities liquidity support program, pushing Treasury yields lower and weighing on the dollar, providing modest support for precious metals.

**Weak Dollar and Falling Yields Pose Short-Term Tailwinds**

The Treasury's buyback program directly pressured long-end yields, diminishing the yield appeal of dollar assets, with the dollar index remaining subdued. For dollar-denominated silver, a weaker dollar implies lower holding costs for non-US buyers, providing a marginal boost to demand. However, this driver stems more from policy expectations than changes in physical supply-demand dynamics, and its sustainability depends on whether liquidity in the Treasury market genuinely improves going forward.

**Technical Focus: Battle at the $66–$67 Resistance Zone**

The daily chart shows silver, rebounding from its July low, has approached the key resistance band of $66–$67, which marks the upper boundary of the descending channel since early 2026. The current price sits precisely within this decision zone—if daily closes consistently hold above this area, it would constitute a strong bullish signal, with the next target near $70. On the downside, the lower edge of the ascending channel in the $62–$63 region offers initial support; a break below would undermine the short-term bullish thesis.

**Safe-Haven Appeal Provides Additional Support but Remains Secondary**

Silver possesses dual characteristics as both a precious metal safe haven and an industrial metal. Recent unexpectedly weak US nonfarm payroll data have cooled market expectations for further Fed tightening, benefiting precious metals broadly. However, compared with gold, silver's safe-haven premium is relatively limited, with its trajectory more closely tracking dollar and rate expectations. According to market analysts, whether silver can break through the current resistance zone still depends on whether the dollar can sustain its weakness and whether macro sentiment deteriorates further.