• Rising global yields as a result of hawkish ECB and Fed speak is weighing heavily on silver.
• XAG/USD has dumped over 2.5% on the day back to near $24.50.
• Bears are eyeing a test of recent lows in the $24.00 area, where the 200DMA also resides.

Chatter from ECB Vice President Luis de Guindos regarding a possible ECB rate hike as soon as July earlier in the morning meant that global yields were already on the front foot heading into the US trading session and the latest remarks from Fed’s Mary Daly about how the Fed will likely be raising interest rates by 50 bps at the next “couple” of Fed meetings has ignited further upside. At the time of writing, US 2-year yields were up 12 bps to trade back above 2.7% and 10-year yields were up 10 bps to trade in the mid-2.90s%.

The rise in US (and global) yields as bond market participants up their bets on central bank tightening in wake of the latest round of rhetoric from ECB and Fed policymakers has seen spot silver (XAG/USD) prices incur sharp losses. XAG/USD was last trading down by more than 2.5% on the day near the $24.50 per troy ounce mark, having dumped below its 21 and 50-Day Moving Averages earlier in the day, both of which reside closer to the $25.00 level.

Markets are braced for further central bank rhetoric in the coming hours, with both Fed Chair Jerome Powell and ECB President Christine Lagarde slated to speak from 1800BST. Should their comments add further fuel to the global yield rally, XAG/USD bears will be eyeing further downside and may target support in the $24.00 area in the form of earlier monthly lows and the 200DMA.