FX.co ★ XAG/USD, SILVER

As the dollar declined and Treasury yields retreated from their recent highs, silver reached $70 for the first time since mid-June on Friday. The physical market remained tight beneath gold, which was racing alongside. Sellers were unable to retain it when they arrived at the round number. The next level of overhead is the 200-day moving average. Friday's closing price for spot silver (XAGUSD) was $68.97, up $0.88, or 1.29%. During the session, the metal hit $70.02 and dropped as low as $67.91. The close was still significant. Silver finished far above the day’s low after buyers spent most of the session in control. The U.S. Treasury Department said that it would start buying back government bonds with maturities ranging from 10 to 30 years at a minimum of $4 billion apiece in early September. Larger acquisitions are still possible, according to Treasury sources. The announcement was made after long-dated rates hit multi-year highs and Washington could no longer ignore the rising cost of borrowing. The 200-day moving average at $72.03, which governs the long-term trend, and the June 17 major peak at $71.56 were both within striking distance of spot silver's higher closing price on Friday. The market may finally enter the long-term retracement zone between $74.63 and $83.61 if it moves to the bullish side of this signal and attracts additional institutional investment. A new round of profit-taking may occur if purchasers are unable to maintain a move over Friday's high of $70.02. The initial downward target would be its retracement zone around $66.29 to $65.41 given the $62.56 to $70.02 range.