• Precious metal recovers 0.6% after Wednesday's selloff as Asian session buyers emerge

• Dollar index retreats from monthly highs,Litecoin wallet extension easing pressure on commodity valuations

• Mixed signals emerge as Treasury yields stabilize while debt ceiling negotiations continue

The XAG/USD pair demonstrates resilience near the $33.30-33.50 range during Thursday's trading session, marking a notable recovery from Wednesday's 0.55% decline. Market observers note this rebound coincides with technical support levels holding firm despite broader USD strength earlier in the week.

Currency analysts highlight how Japan's unexpected fiscal policy shift created ripple effects across global markets. Tokyo's proposed reduction in government bond issuance initially boosted the greenback, but subsequent profit-taking allowed silver to regain lost ground. The 10-year Treasury yield currently fluctuates near 4.46%, with longer-dated bonds showing similar stability at 4.97%.

Geopolitical developments continue influencing precious metal flows. The 30-day extension of US-EU tariff negotiations removed immediate trade war fears, temporarily reducing safe-haven demand. However, structural concerns persist regarding the US fiscal trajectory, particularly as lawmakers debate legislation that could expand the deficit by $3.8 trillion through combined tax and spending measures.

Market participants remain divided on silver's near-term direction. Some point to improving industrial demand fundamentals, while others caution that persistent inflation could maintain pressure on non-yielding assets. The metal's dual nature as both monetary instrument and industrial commodity creates unique volatility patterns that traders continue monitoring closely.