Silver Price Forecast: Rally Eyes 200-Day MA After $70 Test
Author: James Hyerczyk
Published: August 24, 2026
Key Highlights
- Treasury buybacks have lowered long-term yields and weakened the dollar, giving silver buyers control.
- Oil prices pose a reversal risk as higher energy costs could pressure silver prices.
- The 200-day moving average is a critical resistance level for silver prices.
Market Overview
Silver prices tested the $70 mark for the first time since mid-June, driven by a weakening dollar and declining Treasury yields. The spot silver price closed at $68.97, up 1.29% for the day, indicating strong buyer control throughout the session.
Treasury Buybacks Impact
The U.S. Treasury announced plans to double buybacks of government bonds with maturities of 10 to 30 years, starting in early September. This move aims to alleviate rising long-dated yields, which have reached multi-year highs. As a result, the dollar weakened, providing a favorable environment for silver buyers.
Gold's Influence on Silver
Gold prices also surged, reaching their highest level in three months, which further supported silver's upward movement. The physical silver market remains tight, with demand outpacing supply, contributing to the bullish sentiment.
Technical Analysis
Silver's price action showed resilience, with a significant move towards the $70 mark. The 200-day moving average at $72.03 is a key target; crossing above this level could attract institutional investment and push prices into the long-term retracement zone of $74.63 to $83.61.
However, if silver fails to maintain momentum above $70, profit-taking could occur, with potential downside targets at $66.29 to $65.41.
What to Watch
Key factors to monitor include the performance of the dollar and Treasury yields, as well as upcoming inflation data and Federal Reserve commentary. The ongoing U.S.-Iran conflict and elevated oil prices could also impact market dynamics, particularly if they lead to renewed rate-hike expectations.
Conclusion
The silver market is currently positioned for potential gains, but external factors such as oil prices and macroeconomic conditions will play a crucial role in determining the sustainability of this rally.