Silver price falls sharply amid easing geopolitical tensions, Fed policy outlook

💡 DMK Insight

Silver’s drop to around $89.70 signals a critical moment for traders: After hitting record highs earlier this week, the 2.50% decline suggests a potential reversal or profit-taking phase. This corrective move could be influenced by broader market dynamics, including shifts in the dollar’s strength and interest rate expectations. Traders should keep an eye on the $88 support level; a break below could trigger further selling pressure. Conversely, if silver manages to hold above this level, it might attract buyers looking for a dip. It’s also worth noting that this pullback could impact related assets like gold, which often moves in tandem with silver. If gold prices stabilize or rise, it could provide a floor for silver, while a continued decline in gold could exacerbate silver’s downward pressure. Watch for any economic data releases that might affect the dollar, as these could further influence silver’s trajectory in the coming days.