Silver Price Today Surges 2% Above $60 as US Dollar and Bond Yields Retreat

The silver price today rebounded above $60 per ounce on Friday, October 9, as a retreat in US Treasury yields and a softer dollar encouraged investors to return to precious metals following a difficult week.

Silver (XAG/USD) traded around $60.37 during the European session, gaining approximately 2% from Thursday’s reference price of $59.19. The recovery follows a sharp decline that pushed the white metal toward $58.50, its weakest area in roughly two months.

Gold price also advanced, climbing more than 1% toward $4,190 per ounce as lower oil prices eased immediate inflation concerns. Despite Friday’s recovery, the silver market outlook remains sensitive to US interest rates. Treasury yields are still historically elevated, and investors remain uncertain about how aggressively the Federal Reserve will tighten monetary policy in the coming months.

Why Is Silver Price Rising Today?

The biggest driver behind Friday’s silver price rally is the pullback in US Treasury yields. The benchmark US 10-year Treasury yield retreated toward 5.22% after recently reaching approximately 5.36%, its highest level since 2002. Higher bond yields generally reduce demand for precious metals because silver and gold do not pay interest. When yields decline, the opportunity cost of holding these assets falls.

The US Dollar Index also eased toward 102.00, providing additional support for silver prices. Since silver is internationally priced in dollars, a weaker greenback can make the metal more affordable for buyers using other currencies.

However, the recovery follows several sessions of significant selling pressure. Silver remains well below its late-September trading levels, meaning Friday’s advance has not yet established a sustained bullish reversal

Silver and Gold Prices Rebound as Oil Prices Fall

The recovery in silver and gold prices today has also been supported by easing concerns about an immediate escalation in Middle East tensions. Oil prices retreated after President Donald Trump expressed optimism about diplomatic discussions with Iran and indicated that the United States would not launch military strikes before November’s midterm elections.

Lower crude oil prices can reduce inflation expectations, potentially limiting the need for additional Federal Reserve interest rate increases. That matters for silver because tighter monetary policy tends to support the dollar and increase the appeal of interest-bearing investments.

Gold rose approximately 1.4% to $4,190 per ounce on Friday, while silver gained around 2%, outperforming the yellow metal during the recovery. The gold-to-silver ratio declined to approximately 69.36 from 69.83 on Thursday, reflecting silver’s stronger percentage advance. Nevertheless, renewed volatility in oil prices could quickly reverse some of these gains.

Federal Reserve Interest Rate Outlook Remains a Risk for Silver

The silver price forecast for October 2026 remains closely linked to expectations surrounding the Federal Reserve. Minutes from the Fed’s September meeting indicated that policymakers remain concerned about persistent inflation, with further monetary tightening still under consideration.

Markets currently assign approximately a 19% probability to an October interest rate increase, while expectations for at least one additional hike by December remain considerably higher.

For silver investors, the distinction matters. A pause in near-term rate increases could support precious metals, but expectations of higher borrowing costs over the coming months may limit the recovery. The next major catalyst will be the US September Consumer Price Index report, which could influence expectations for the Fed’s remaining 2026 policy decisions.

A softer inflation reading could strengthen the silver price recovery, while unexpectedly high inflation may renew upward pressure on Treasury yields and the dollar.