Silver steadies near £48.67 an ounce as surging US bond yields keep pressure on

Silver is steadying at around £48.67 a troy ounce this morning, roughly £1.56 a gram before dealer costs. Kitco put spot silver at $64.33 early on Friday, up 10 cents after two days of losses. The sterling figure is our conversion at Thursday's rate of about $1.32 to the pound.

The pressure this week has come from the US bond market. According to Trading Economics, a stronger dollar and surging Treasury yields pushed silver towards $64 on Thursday, after US business activity data came in stronger than expected. The 10-year Treasury yield climbed above 5.1 per cent, and markets now price roughly a 70 per cent chance of another Federal Reserve rate rise in October. Silver pays no interest, so higher yields make it less attractive next to bonds and cash.

Writing for Kitco, analyst Przemyslaw Radomski argues that silver in 2026 has tracked long-term interest rates, and the oil prices feeding them, more closely than anything else. When long yields have eased, silver has tended to recover within days. For now, the metal sits about 46 per cent below its January peak of $121.58.

With gold near $4,268, the gold to silver ratio is around 66. For UK buyers, physical silver carries 20% VAT on top of spot, dealer premium and delivery, so comparing all-in prices matters most. This is market information, not financial advice.