Silver (XAG/USD) trades near $60.50 amid elevated 10-year Treasury yields near 5.25%, the highest in over two decades, which raise opportunity costs for non-yielding assets and pressure prices alongside a firm U.S. dollar. Recent soft September nonfarm payrolls of just 29,000 jobs, well below consensus, have reduced near-term Fed hike probabilities and provided modest support, though the central bank’s September rate increase to 3.75–4.00% and hawkish signals sustain a tightening bias. Structural supply deficits persist through 2026 per the Silver Institute, supported by solar and industrial demand, yet recent inventory builds and demand-thrifting in photovoltaics introduce downside risks. Key upcoming catalysts include the October FOMC meeting and September CPI release, with traders monitoring yields and labor data for shifts in rate-path expectations.