LONDON, Sept. 26 -- For UK silver buyers, Thursday's session is a lesson in why geography alone does not determine price. XAG/GBP is trading just below £50 per troy ounce, reflecting an XAG/USD below $64.00 translated through a sterling rate that has itself been compressed by the same US dollar strength capping the dollar-denominated price. The Strait of Hormuz is still a factor. The US-Iran diplomatic talks on the United Nations General Assembly sidelines in New York are a factor. And the 5.2% US 10-year Treasury yield - the highest since 2007 - is the dominant factor, because it drains financial demand from all non-yielding assets simultaneously, regardless of whether buyers are settling in pounds, dollars, or rupees.

XAG/GBP sett...