Silver prices decreased on Monday, stepping back from a recent high of $32.96 per ounce. Despite this decline, the overall trend remains positive, with an upward trajectory expected to persist unless prices fall below $30.88. The 50-day moving average, currently standing at $29.51, acts as a significant support level in case selling pressure intensifies. The performance of silver is being influenced by opposing factors: ascending U.S. Treasury yields and a robust U.S. dollar are exerting downward pressure, while tensions in the Middle East and anticipated Chinese demand are providing some support. At 12:48 GMT, XAG/USD is trading at $31.59, showing a decrease of $0.61 or -1.91%. On the other hand, U.S. Treasury yields surged on Monday, with the 10-year yield surpassing 4%, the highest level since August. The 2-year Treasury yield also rose, increasing by over 6 basis points to 3.99%. This climb in yields follows better-than-anticipated U.S. jobs data released on Friday, revealing a significant growth in nonfarm payrolls for September, surpassing economists’ predictions. The U.S. dollar continued its rally on Monday, supported by strong labor market reports and escalating tensions in the Middle East. The dollar index hit a seven-week peak at 102.69, reflecting its largest weekly increase in two years. Analysts anticipate the dollar to remain robust in the near term, bolstered by diminishing recession fears and steady economic indicators. The robust dollar and heightened Treasury yields are capping the upside potential for silver, as these factors make non-interest-bearing assets like precious metals less appealing to investors. Looking ahead, silver prices could face pressure from climbing U.S. Treasury yields and a strengthening dollar in the short term. Nevertheless, geopolitical uncertainties and the potential surge in Chinese demand may serve as a support level, preventing a substantial decline. Traders are advised to monitor key levels, with $30.88 representing a critical support threshold. Maintaining above this level could lead to a continuation of the upward trend, while a breach below might trigger a deeper correction towards the 50-day moving average at $29.51.