Silver Price Forecast: XAG/USD falls to near $81.50 on profit booking

💡 DMK Insight

Silver’s recent dip to around $81.70 raises questions about its near-term momentum. After two days of gains, this pullback could signal profit-taking or a broader market correction. Traders should consider that silver often reacts to shifts in the dollar and interest rates, so keep an eye on economic indicators like inflation data and Fed announcements. If silver breaks below key support levels, it could trigger further selling, while a rebound might depend on renewed demand from industrial sectors or safe-haven buying. Watch for volatility in correlated assets like gold, which may influence silver’s trajectory. The real story is whether this dip is a temporary setback or a sign of deeper bearish sentiment. For now, monitor the $80 support level closely; a sustained move below could lead to further declines, while a bounce back above $82 might reignite bullish sentiment.