As U.S. bond yields rise further, silver prices have plummeted below $32.00.

Surprisingly optimistic U.S. non-farm employment data have forced traders to reduce bets on significant rate cuts by the Federal Reserve.

Middle East tensions are expected to provide support for silver prices.

The silver price (XAG/USD) expanded its downside space below $32.00 during Monday's European session. The white metal weakened as U.S. bond yields rose further, with the possibility of the Federal Reserve (Fed) cutting rates by 50 basis points (bps) again in November no longer being considered.

The yield on the 10-year U.S. Treasury note is slightly above 4%. The higher yields on interest-bearing assets reduce the opportunity cost of holding non-yielding assets, such as silver. The U.S. Dollar Index (DXY), which tracks the value of the dollar against six major currencies, is hovering around 102.50.

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However, with escalating tensions between Iran and Israel, silver is unlikely to become extremely bearish. Historically, geopolitical tensions have increased the demand for precious metals as a safe haven.

After the U.S. September employment report showed strong labor demand and robust wage growth, market speculation about significant rate cuts by the Fed diminished. According to the CME FedWatch tool, traders are expecting a 25 basis point rate cut by the Fed in November.

Optimistic labor market data eased concerns about an economic slowdown, which forced traders to bet on a second consecutive 50 basis point rate cut in September.

Looking ahead, the next move in silver prices will be influenced by the September U.S. Consumer Price Index (CPI) data, which will be released on Thursday. Economists expect the core CPI (excluding the more volatile food and energy prices) to show a steady increase of 3.2%.