Silver Prices Rise Near 61 Dollars as Oil Falls on Ceasefire

Silver prices advanced in international and Chinese markets on Monday, October 12, 2026, as investors assessed an energy ceasefire between Russia and Ukraine, falling oil prices, and lower US Treasury yields. Spot silver rose 2.78% to $60.81 per ounce, according to figures reported by FXStreet and Shanghai Metals Market, while cautious industrial buyers limited activity in China's physical silver market.

FXStreet reported that spot silver traded near $61.10 during Asian hours, holding gains from Friday. Lower oil prices following the ceasefire announcement eased pressure on financial markets, while declining US Treasury yields improved conditions for silver, a precious metal that does not generate interest income.

West Texas Intermediate crude fell 2% to approximately $89 per barrel. The 10-year US Treasury yield stood near 5.24%, down from a more than two-decade high of 5.36% recorded on Friday. US bond markets were closed Monday for Columbus Day.

US President Donald Trump announced the energy ceasefire over the weekend, stating that Russia and Ukraine had agreed to stop attacks on energy facilities. The arrangement came amid continued pressure on energy supplies linked to tensions in the Middle East.

Trump announced the agreement in a post on Truth Social.

"Effective immediately, there is an ENERGY CEASEFIRE in the War between Russia and Ukraine. Both parties have agreed. Do not break it!" said Trump, the US president.

The announcement followed Trump's Friday statement that he had reached an agreement with Russian President Vladimir Putin for Russia to supply diesel in stages. According to Shanghai Metals Market, the United States had also eased sanctions to permit Russian diesel imports through April 2027.

Russia agreed to supply 300,000 metric tons of diesel to the United States and global markets in October, 500,000 metric tons in November, and 1 million metric tons in December, with additional volumes possible, according to the Chinese market report.

Meanwhile, investors were awaiting the release of the US Consumer Price Index for September, scheduled for Wednesday. The inflation report was expected to provide further information for assessing the economic outlook and interest-rate conditions affecting precious metals.

In China, the Shanghai Metals Market benchmark for Shanghai Gold Exchange silver T+D stood at 14,594 yuan per kilogram at 10 a.m. Premiums ranged from parity to 10 yuan per kilogram, with a weighted average premium of 3.3 yuan per kilogram. The benchmark traded at a discount of 45 to 55 yuan per kilogram against the most actively traded December 2026 Shanghai Futures Exchange silver contract, known as SHFE 2612.

Shanghai Metals Market reported that spot gold had gained 1.47% to $4,194.45 per ounce, while silver's 2.78% advance demonstrated a stronger percentage rebound than gold. The three major US stock indexes also closed higher on Friday, and Hong Kong shares advanced after opening higher, with precious metals stocks attracting notable capital inflows.

Despite the rebound in benchmark prices, Chinese physical silver transactions remained subdued. Downstream buyers were reluctant to purchase at elevated prices, partly because many had already secured sufficient inventories ahead of the holiday period.

Traders who replenished inventories the previous week maintained relatively firm offers. In Shanghai, morning dealer offers centered on a discount of 45 yuan per kilogram against the most actively traded SHFE 2612 contract, while smelter ex-works offers were generally near parity. Shanghai Metals Market reported limited transactions and declining overall trading activity.

Technical indicators also pointed to continued pressure on silver's short-term outlook. FXStreet placed the daily XAG/USD price near $61.02, below its 20-day exponential moving average of $62.07. The relative strength index stood at 44, indicating subdued momentum rather than deeply oversold conditions.

FXStreet identified $62.07 as the immediate resistance level, noting that a daily close above the 20-day moving average would be needed to ease the bearish near-term bias. Without a recovery above that threshold, silver could remain vulnerable to further declines toward previous chart lows.