Silver prices dropped below $32.00 as US bond yields rose, leading traders to scale back expectations for a large rate cut by the Federal Reserve. Despite the decline, tensions in the Middle East are expected to provide some support for the price of Silver. The US Dollar Index remained steady near 102.50 as 10-year US Treasury yields rose above 4%, reducing the appeal of non-yielding assets like Silver.

The Silver price outlook may not turn extremely bearish due to escalating tensions between Iran and Israel. Strong US employment data for September diminished concerns about an economic slowdown, causing traders to adjust their expectations for Fed interest rate cuts. Upcoming US Consumer Price Index data will likely influence the next direction for Silver prices, with economists expecting steady growth in core CPI. Trading around $32.50, Silver faces resistance from the May 20 high, but remains supported by upward-sloping moving averages and bullish RSI on the daily chart.