Silver Price Forecast: XAG crashes toward 200-day SMA, eyes $61.00

💡 DMK Insight

Silver’s sharp drop is a wake-up call for traders: here’s why. The recent plunge in XAG/USD, challenging the critical 200-day SMA at around $67.79, signals a shift in market sentiment. A nearly 8% daily loss and a projected 10% weekly decline highlight the impact of the stronger-than-expected US Nonfarm Payrolls report. This data typically strengthens the dollar, putting pressure on precious metals like silver. Traders should watch for potential support at the 200-day SMA; a break below could trigger further selling, while a bounce might offer a short-term buying opportunity. But don’t overlook the broader context. If the dollar continues to gain strength, silver could face additional headwinds, especially with inflation concerns still lingering. Keep an eye on correlated assets like gold, which may also react to these shifts. For now, monitor the $67.79 level closely—if it holds, it could provide a crucial pivot point for traders looking to capitalize on volatility.