Silver Faces Sell-Off Amid Trump Victory and Rising Treasury Yields: Key Levels to Watch

Silver showed a massive sell-off as Trump's victory pushed the US dollar to a multi-month high. It reached a low of $30.83 and is currently trading around $31.12.The short-term trend remains positive as long as support at 30 holds.

Following Donald Trump's victory in the presidential election, U.S. Treasury yields jumped significantly. The 30-year yield rose by 24 basis points to 4.68%, reaching its highest level since May 2024, while other yields went up by at least 13 basis points. This increase shows that investors are worried Trump's policies could lead to higher inflation. Consequently, traders are changing their views on future interest rate cuts by the Federal Reserve. Although a quarter-point rate cut is expected from the Fed, the market is becoming more focused on inflation risks.

Markets eye US Fed monetary policy on Nov 7th for further movement.

The gold-silver ratio is at 85.55, indicating that gold has outperformed silver recently. A ratio above 80 might suggest that silver could be a more appealing investment compared to gold.

For trading, the major level to watch is $31.25. Silver is currently below key moving averages, with near-term support at $30.70. If it drops below this, it could target $30/$29.60. On the upside, immediate resistance is at $31.25, and breaking this could lead to targets of $31.75/$32.20/$32.75/$33/$33.60/$34/$34.50/$34.50/$34.73.

It may be a good strategy to sell on rallies around $31.95-$32, with a stop-loss at $32.20 and a target price of $29.65.