Silver slumps to $79 despite softer US Dollar, falling US yields

💡 DMK Insight

Silver’s nearly 2% drop despite a weaker dollar is a red flag for bulls. With XAG/USD down 1.81% this week, rising crude oil prices are squeezing silver’s appeal. Traders should note that while a softer dollar typically supports precious metals, the current risk-on sentiment is overshadowing that dynamic. If crude oil continues its ascent, it could further dampen silver’s recovery prospects. Watch for key support around recent lows; a break below could trigger more selling pressure. Conversely, if silver can reclaim previous resistance levels, it might attract buyers looking for a dip. Here’s the kicker: while many are focused on the dollar’s weakness, the interplay with oil prices is crucial. If oil prices keep climbing, silver could face additional headwinds, making it essential to monitor crude’s movements closely. Keep an eye on the daily chart for potential reversal patterns or continued downtrends.