Silver’s problems may be about to grow much worse
Silver is testing support near $60 as a stronger US dollar and rising Treasury yields threaten to deepen the metal’s decline towards $57 and potentially $53-$54.
Michael J Kramer
Founder, Mott Capital Management
07 Oct 2026, 12:55
Silver prices have been trading sideways, but with the US dollar strengthening and Treasury yields continuing to trend higher, silver may find that its recent struggles are about to worsen. The metal has been sitting just above a support region between $57 and $60 but is drawing closer to breaking the upper end of that range and heading towards the lower $50s.
A drop below $60 would put silver in a position to fall towards $57. It may not take much for that to happen either. With the relative strength index at 40 and trending lower, momentum clearly favours the metal extending its decline. Additionally, silver has now moved below its 10-day exponential and 50-day simple moving averages, which are also likely to act as resistance should it attempt to rise.
Silver daily, April 2026 – present
Source: TradingView, 7 October 2026
The problem for silver is much more fundamental. As EUR/USD falls, indicating that the dollar is strengthening, the risk is that EUR/USD falls further and potentially declines towards $1.10.
EUR/USD daily, January 2025 – present
Source: TradingView, 7 October 2026
Silver prices and EUR/USD have traded closely with each other for some time. One could even argue that the declines in silver have not kept pace with the weakening EUR/USD and that, the stronger the dollar grows against the euro, the more likely it is that silver prices will decline towards $57.
Silver and EUR/USD daily, August 2025 – present
Source: TradingView, 7 October 2026
A break below $57 in silver would set up a potential decline towards $53 to $54.
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