Silver Price Forecast: XAG/USD falls to near $116.50 after hitting fresh all-time highs

💡 DMK Insight

Silver just hit a record high and now it’s pulling back—here’s what that means for traders: After reaching $120.46, the current pullback to around $116.60 could signal profit-taking among traders who capitalized on the recent surge. This price action is crucial as it tests the support level around $115. If this level holds, it could set the stage for another rally, especially with ongoing inflation concerns and potential geopolitical tensions that often drive safe-haven assets like silver. However, if it breaks below $115, we might see a deeper correction, possibly targeting the $110 mark. Traders should keep an eye on volume and momentum indicators to gauge the strength of this pullback. On the flip side, the rapid ascent to record highs might have attracted speculative interest, which could lead to increased volatility. Institutions might be looking to hedge against inflation, but retail traders could be more skittish. Watch for any news that could impact demand, like changes in industrial usage or shifts in monetary policy. The next few days will be critical to determine if this is a healthy consolidation or the start of a more significant downturn.