Silver Price Forecast: XAG/USD Steadies Near $69.00 Amid US Bond Buybacks

Silver spot extended its strength during the European session on Monday, rising for a fourth consecutive trading day, with the price last seen near $68.79, after trading around the $69.00 level at the time of writing. Persistent concerns over US debt management and fiscal sustainability continue to underpin precious metals prices as a core factor.

**US Bond Buybacks and Fiscal Concerns Converge**

The US Treasury recently unexpectedly increased buybacks of long-dated bonds, a move that temporarily eased some upward pressure on yields in the short term, but the market has interpreted it as a signal of mounting fiscal strain. According to FXStreet, US Treasury yields had rebounded earlier following the Treasury's buyback announcement, briefly pressuring gold prices, yet silver showed relative resilience and subsequently regained strength. The debt management operations have not eliminated deep-seated doubts about fiscal sustainability, but have instead reinforced the safe-haven allocation logic for precious metals.

**Silver Shows Resilience Amid Divergence from Gold**

Unlike gold's choppy performance, silver has displayed stronger momentum in this rally. FXStreet data shows that silver recorded a gain of over 1.70% on Thursday and tested the 100-day simple moving average. Despite US yields recouping some losses and the dollar rebounding during the same period, silver has maintained its upward trajectory. Market reports indicate that industrial demand expectations, combined with risk-off sentiment, are jointly supporting silver prices, keeping the metal in a relatively firm stance near highs.

**Outlook: Focus on Debt Management Developments**

In the near term, the Treasury's subsequent buyback plans and yield trends remain key variables influencing precious metals. If debt management operations continue to signal fiscal pressure, silver's safe-haven appeal could be further activated. However, with prices currently near multi-year highs, technical profit-taking pressure exists, and market views on further upside potential remain divided.