What will Silver (XAGUSD) hit in August 2026?
Silver (XAG/USD) has rallied sharply in August 2026 to the $68–$70 range, up roughly 18% month-over-month, primarily on the U.S. Treasury’s mid-month decision to double long-term bond buybacks to at least $4 billion per session. This has pressured yields lower and weakened the dollar, reducing the opportunity cost of holding non-yielding metals while amplifying safe-haven flows amid Middle East tensions and Strait of Hormuz risks. Cooling July CPI at 3.4% and softer employment data have further trimmed near-term Fed rate-hike odds, supporting prices despite elevated real yields. Persistent structural deficits—forecast at a sixth consecutive year by the Silver Institute—underpin physical tightness, with industrial and investment demand adding resilience. Key near-term catalysts include Wednesday’s PCE release and the Jackson Hole symposium, which could shift dollar and rate expectations into month-end resolution.