Can silver (XAGUSD) rebound on easing yields and tight supply?Silver / U.S. DollarFOREXCOM:XAGUSDKrisadaYoonaisilCan silver prices (XAGUSD) rebound as easing yields and persistent supply deficits provide support? Fundamental Analysis For reasons similar to gold, silver prices may have room to rebound. 1. The Fed has left the door open to a pause, and markets are pricing out an aggressive Fed, supporting silver prices. 2. Yields have started to ease, while demand at US Treasury auctions remains strong. 3. The silver production deficit is a structural problem that remains unresolved. 4. Surging energy prices are driving demand for alternative energy, including solar panel demand. 5. Markets may view the recent decline as a discount, potentially attracting investor interest. 6. The risk is that still-elevated yields could limit the silver price recovery. Technical Analysis 7. Silver prices have been in a corrective wave for some time. However, the direction remains unclear, indicating a consolidation phase. 8. The corrective wave formed after the price bottomed out, creating a bullish flag pattern, a bullish continuation pattern in which the price resumes its uptrend once the consolidation within the flag is complete. 9. The price has reached the descending channel’s lower bound, offering an opportunity for an upward reversal. 10. If XAGUSD holds above the 78.6% Fibonacci retracement around 58.30, the price may rise to test the upper bound of the channel near 65.00. Analysis by: Krisada Yoonaisil, Financial Markets Strategist at Exness